10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2019

Commission file number 000-54863

EATON CORPORATION plc

(Exact name of registrant as specified in its charter)

Ireland				98-1059235
(State or other jurisdiction of incorporation or organization)				(IRS Employer Identification Number)
Eaton House,	30 Pembroke Road,	Dublin 4,	Ireland	D04 Y0C2
(Address of principal executive offices)				(Zip Code)

			+353	1637 2900
	(Registrant's telephone number, including area code)
	Not applicable
	(Former name, former address and former fiscal year if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class		Trading Symbol		Name of each exchange on which registered
Ordinary shares ($0.01 par value)		ETN		New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer," “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	☑	Accelerated filer	☐	Non-accelerated filer	☐
Smaller reporting company	☐	Emerging growth company	☐	(Do not check if a smaller reporting company)

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange

Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

There were 413.4 million Ordinary Shares outstanding as of September 30, 2019.

TABLE OF CONTENTS
PART I — FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS	2
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	34
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	41
ITEM 4. CONTROLS AND PROCEDURES	41
PART II — OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS	42
ITEM 1A. RISK FACTORS	42
ITEM 2. UNRESTRICTED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	42
ITEM 6. EXHIBITS	43
SIGNATURES	44

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF INCOME

	Three months ended September 30					Nine months ended September 30
(In millions except for per share data)	2019			2018		2019			2018
Net sales	$	5,314		$	5,412	$	16,152		$	16,150
Cost of products sold	3,512			3,597		10,782			10,841
Selling and administrative expense	885			889		2,709			2,679
Research and development expense	147			138		454			439
Interest expense - net	54			67		183			205
Arbitration decision expense	—			275		—			275
Other (income) expense - net	(2		)	7		(35		)	13
Income before income taxes	718			439		2,059			1,698
Income tax expense	116			23		299			184
Net income	602			416		1,760			1,514
Less net income for noncontrolling interests	(1		)	—		(1		)	—
Net income attributable to Eaton ordinary shareholders	$	601		$	416	$	1,759		$	1,514
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.44		$	0.95	$	4.16		$	3.45
Basic	1.44			0.96		4.18			3.47
Weighted-average number of ordinary shares outstanding
Diluted	418.4			436.3		422.5			438.4
Basic	416.6			433.5		420.7			435.8
Cash dividends declared per ordinary share	$	0.71		$	0.66	$	2.13		$	1.98

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

EATON CORPORATION plc

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three months ended September 30						Nine months ended September 30
(In millions)	2019			2018			2019			2018
Net income	$	602		$	416		$	1,760		$	1,514
Less net income for noncontrolling interests	(1		)	—			(1		)	—
Net income attributable to Eaton ordinary shareholders	601			416			1,759			1,514
Other comprehensive (loss) income, net of tax
Currency translation and related hedging instruments	(252		)	(132		)	(235		)	(546		)
Pensions and other postretirement benefits	35			40			88			122
Cash flow hedges	(42		)	(6		)	(75		)	(2		)
Other comprehensive loss attributable to Eaton    ordinary shareholders	(259		)	(98		)	(222		)	(426		)
Total comprehensive income attributable to Eaton   ordinary shareholders	$	342		$	318		$	1,537		$	1,088

The accompanying notes are an integral part of these condensed consolidated financial statements.

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EATON CORPORATION plc

CONSOLIDATED BALANCE SHEETS

(In millions)	September 30, 2019			December 31, 2018
Assets
Current assets
Cash	$	549		$	283
Short-term investments	281			157
Accounts receivable - net	3,787			3,858
Inventory	2,901			2,785
Prepaid expenses and other current assets	494			507
Total current assets	8,012			7,590
Property, plant and equipment
Land and buildings	2,436			2,466
Machinery and equipment	6,257			6,106
Gross property, plant and equipment	8,693			8,572
Accumulated depreciation	(5,210		)	(5,105		)
Net property, plant and equipment	3,483			3,467
Other noncurrent assets
Goodwill	13,337			13,328
Other intangible assets	4,657			4,846
Operating lease assets	444			—
Deferred income taxes	294			293
Other assets	1,668			1,568
Total assets	$	31,895		$	31,092
Liabilities and shareholders’ equity
Current liabilities
Short-term debt	$	2		$	414
Current portion of long-term debt	6			339
Accounts payable	2,290			2,130
Accrued compensation	421			457
Other current liabilities	1,942			1,814
Total current liabilities	4,661			5,154
Noncurrent liabilities
Long-term debt	8,013			6,768
Pension liabilities	1,239			1,304
Other postretirement benefits liabilities	322			321
Operating lease liabilities	333			—
Deferred income taxes	309			349
Other noncurrent liabilities	1,118			1,054
Total noncurrent liabilities	11,334			9,796
Shareholders’ equity
Ordinary shares (413.4 million outstanding in 2019 and 423.6 million in 2018)	4			4
Capital in excess of par value	12,151			12,090
Retained earnings	8,062			8,161
Accumulated other comprehensive loss	(4,367		)	(4,145		)
Shares held in trust	(2		)	(3		)
Total Eaton shareholders’ equity	15,848			16,107
Noncontrolling interests	52			35
Total equity	15,900			16,142
Total liabilities and equity	$	31,895		$	31,092

The accompanying notes are an integral part of these condensed consolidated financial statements.

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EATON CORPORATION plc

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine months ended September 30
(In millions)	2019			2018
Operating activities
Net income	$	1,760		$	1,514
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	668			680
Deferred income taxes	(71		)	(211		)
Pension and other postretirement benefits expense	115			123
Contributions to pension plans	(89		)	(99		)
Contributions to other postretirement benefits plans	(11		)	(26		)
Changes in working capital	6			62
Other - net	136			(205		)
Net cash provided by operating activities	2,514			1,838
Investing activities
Capital expenditures for property, plant and equipment	(441		)	(411		)
Cash paid for acquisitions of businesses, net of cash acquired	(277		)	—
Sales (purchases) of short-term investments - net	(132		)	329
Proceeds (payments) for settlement of currency exchange contracts not designated as hedges - net	26			(122		)
Other - net	(8		)	(52		)
Net cash used in investing activities	(832		)	(256		)
Financing activities
Proceeds from borrowings	1,232			80
Payments on borrowings	(757		)	(486		)
Cash dividends paid	(907		)	(864		)
Exercise of employee stock options	40			28
Repurchase of shares	(978		)	(600		)
Employee taxes paid from shares withheld	(45		)	(24		)
Other - net	(8		)	(2		)
Net cash used in financing activities	(1,423		)	(1,868		)
Effect of currency on cash	7			52
Total increase (decrease) in cash	266			(234		)
Cash at the beginning of the period	283			561
Cash at the end of the period	$	549		$	327

The accompanying notes are an integral part of these condensed consolidated financial statements.

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EATON CORPORATION plc

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Amounts are in millions unless indicated otherwise (per share data assume dilution).

Note 1. BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of Eaton Corporation plc (Eaton or the Company) have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles (US GAAP) for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are necessary for a fair presentation of the condensed consolidated financial statements for the interim periods.

This Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in Eaton’s 2018 Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. Management has evaluated subsequent events through the date this Form 10-Q was filed with the Securities and Exchange Commission.

Leases

The Company determines if an arrangement is a lease at inception. Operating lease assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. As most leases do not provide an implicit interest rate, Eaton uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The length of a lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options. The Company made an accounting policy election to not recognize lease assets or liabilities for leases with a term of 12 months or less. Additionally, when accounting for leases, the Company combines payments for leased assets, related services and other components of a lease.

Adoption of New Accounting Standards

Eaton adopted Accounting Standard Update 2016-02, Leases (Topic 842), and related amendments, in the first quarter of 2019 using the optional transition method and has not restated prior periods. The Company elected to use the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the carry forward of historical lease classification of existing leases. The Company recorded a cumulative-effect adjustment of less than $1 to retained earnings as of January 1, 2019. Additionally, the adoption of the new standard resulted in the recording of lease assets and lease liabilities for operating leases of $435 and $446, respectively, as of January 1, 2019. The adoption of the standard did not have a material impact to the Consolidated Statements of Income or Cash Flows.

Eaton adopted Accounting Standard Update 2017-12, Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities, in the first quarter 2019 using the modified retrospective approach for hedge instruments that existed at the date of adoption. ASU 2017-12 is intended to better align the Company's risk management activities with financial reporting for hedging relationships. The standard eliminates the requirement to separately measure and report hedge ineffectiveness, expands the ability to hedge specific risk components, and generally requires the change in value of the hedge instrument and hedged item to be presented in the same income statement line. The new disclosure requirements were applied on a prospective basis and comparative information has not been restated. The adoption of the standard did not have a material impact on the consolidated financial statements.

Note 2. ACQUISITIONS AND DIVESTITURES OF BUSINESSES

Acquired controlling interest of Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S.

On April 15, 2019, Eaton completed the acquisition of an 82.275% controlling interest in Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S. (Ulusoy Elektrik), a leading manufacturer of electrical switchgear based in Ankara, Turkey, with a primary focus on medium-voltage solutions for industrial and utility customers. Its sales for the 12 months ended September 30, 2018 were $126. The purchase price for the shares is approximately $214 on a cash and debt free basis. As required by the Turkish capital markets legislation, Eaton filed an application to execute a mandatory tender offer for the remaining shares shortly after the transaction closed. During the tender offer, Eaton purchased additional shares for $33 through July 2019 to increase its ownership interest to 93.7%. Ulusoy Elektrik is reported within the Electrical Systems and Services business segment.

6

Acquisition of Innovative Switchgear Solutions, Inc.

On July 19, 2019, Eaton acquired Innovative Switchgear Solutions, Inc. (ISG), a specialty manufacturer of medium-voltage electrical equipment serving the North American utility, commercial and industrial markets. Its 2018 sales were approximately $18. ISG will be reported within the Electrical Systems and Services business segment.

Agreement to acquire Souriau-Sunbank Connection Technologies

On July 22, 2019, Eaton committed to acquire the Souriau-Sunbank Connection Technologies (Souriau-Sunbank) business of TransDigm Group Inc. for $920. Headquartered in Versailles, France, Souriau-Sunbank is a global leader in highly engineered electrical interconnect solutions for harsh environments in the aerospace, defense, industrial, energy, and transport markets. Its sales for the 12 months ended June 30, 2019 were $363. The purchase agreement was signed on October 28, 2019. The transaction is subject to customary closing conditions and is expected to close by the end of 2019.

Sale of Lighting business

On March 1, 2019, Eaton announced it plans to pursue a tax-free spin-off of its Lighting business. On October 15, 2019, Eaton entered into an agreement to sell its Lighting business to Signify N.V. for a cash purchase price of $1.4 billion. The decision to sell the Lighting business comes after completing a comprehensive review of various potential transaction alternatives. The Lighting business, which had sales of $1.7 billion in 2018 as part of the Electrical Products segment, serves customers in commercial, industrial, residential and municipal markets. Eaton expects the Lighting business to be classified as held for sale during the fourth quarter of 2019. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2020.

Plan to divest Automotive Fluid Conveyance business

On March 1, 2019, Eaton announced it plans to sell its Automotive Fluid Conveyance business.

Note 3. ACQUISITION INTEGRATION AND DIVESTITURE CHARGES

Eaton incurs integration charges related to acquired businesses, and transaction and other charges to divest and exit businesses. A summary of these charges follows:

	Three months ended September 30				Nine months ended September 30
	2019		2018		2019		2018
Electrical Products	$	4	$	—	$	6	$	—
Electrical Systems and Services	3		—		4		—
Corporate	32		—		55		—
Total acquisition integration and divestiture charges before income tax	39		—		65		—
Income taxes	4		—		5		—
Total after income taxes	$	35	$	—	$	60	$	—
Per ordinary share - diluted	$	0.08	$	—	$	0.14	$	—

Business segment charges in 2019 related to the planned divestiture of the Lighting business and the acquisitions of Ulusoy Elektrik and ISG, and were included in Cost of products sold, Selling and administrative expense or Research and development expense. In Business Segment Information, the charges reduced Operating profit of the related business segment.

Corporate charges in 2019 are primarily related to the planned divestiture of the Lighting business and other charges to exit businesses, and were included in Selling and administrative expense and Other (income) expense-net. In Business Segment Information, the charges were included in Other corporate expense - net.

See Note 15 for additional information about business segments.

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Note 4. REVENUE RECOGNITION

Sales are recognized when obligations under the terms of the contract are satisfied and control of promised goods or services have transferred to our customers. Sales are measured at the amount of consideration the Company expects to be paid in exchange for these products or services.

The Company’s six operating segments and the following tables disaggregate sales by lines of businesses, geographic destination, market channel or end market.

	Three months ended September 30, 2019
Net sales	United States		Rest of World		Total
Electrical Products	$	1,073	$	713	$	1,786
Electrical Systems and Services	1,034		538		1,572
Hydraulics	267		336		603
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	298	$	215	513
	Commercial		Passenger and Light Duty
Vehicle	$	371	$	390	761
eMobility					79
Total					$	5,314

	Three months ended September 30, 2018
Net sales	United States		Rest of World		Total
Electrical Products	$	1,055	$	734	$	1,789
Electrical Systems and Services	1,000		519		1,519
Hydraulics	301		369		670
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	269	$	209	478
	Commercial		Passenger and Light Duty
Vehicle	$	451	$	425	876
eMobility					80
Total					$	5,412

8

	Nine months ended September 30, 2019
Net sales	United States		Rest of World		Total
Electrical Products	$	3,235	$	2,160	$	5,395
Electrical Systems and Services	3,059		1,559		4,618
Hydraulics	863		1,124		1,987
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	884	$	648	1,532
	Commercial		Passenger and Light Duty
Vehicle	$	1,227	$	1,147	2,374
eMobility					246
Total					$	16,152

	Nine months ended September 30, 2018
Net sales	United States		Rest of World		Total
Electrical Products	$	3,048	$	2,279	$	5,327
Electrical Systems and Services	2,877		1,536		4,413
Hydraulics	907		1,196		2,103
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	799	$	600	1,399
	Commercial		Passenger and Light Duty
Vehicle	$	1,333	$	1,335	2,668
eMobility					240
Total					$	16,150

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (revenue recognized exceeds amount billed to the customer), and deferred revenue (advance payments and billings in excess of revenue recognized). Accounts receivables from customers were $3,384 and $3,402 at September 30, 2019 and December 31, 2018, respectively. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. These assets and liabilities are reported on the Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. Unbilled receivables were $104 and $94 at September 30, 2019 and December 31, 2018, respectively, and are recorded in Prepaid expenses and other current assets. The increase in unbilled receivables was primarily due to revenue recognized and not yet billed, partially offset by billings to customers during the quarter.

9

Changes in the deferred revenue liabilities are as follows:

	Deferred Revenue
Balance at December 31, 2018	$	248
Customer deposits and billings	680
Revenue recognized in the period	(683		)
Translation	1
Balance at September 30, 2019	$	246

	Deferred Revenue
Balance at January 1, 2018	$	227
Customer deposits and billings	696
Revenue recognized in the period	(676		)
Translation	(6		)
Balance at September 30, 2018	$	241

A significant portion of open orders placed with Eaton are by original equipment manufacturers or distributors. These open orders are not considered firm as they have been historically subject to releases by customers. In measuring backlog of unsatisfied or partially satisfied obligations, only the amount of orders to which customers are firmly committed are included. Using this criterion, total backlog at September 30, 2019 and December 31, 2018 was approximately $5.4 billion and $5.3 billion, respectively. At September 30, 2019 and December 31, 2018, Eaton expects to recognize approximately 86% and 87%, respectively, of this backlog in the next twelve months and the rest thereafter.

Note 5. GOODWILL

Change in the carrying amount of goodwill by segment follows:

	December 31, 2018		Additions		Translation			September 30, 2019
Electrical Products	$	6,562	$	—	$	(97	)	$	6,465
Electrical Systems and Services	4,241		164		(29		)	4,376
Hydraulics	1,212		—		(23		)	1,189
Aerospace	941		—		(3		)	938
Vehicle	292		—		(3		)	289
eMobility	80		—		—			80
Total	$	13,328	$	164	$	(155	)	$	13,337

The 2019 additions to goodwill relate to the anticipated synergies of acquiring Ulusoy Elektrik and ISG. The allocations of the purchase price from these acquisitions are preliminary and will be completed during the measurement period.

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Note 6. LEASES

Eaton leases certain manufacturing facilities, warehouses, distribution centers, office space, vehicles and equipment. Most real estate leases contain renewal options. The exercise of lease renewal options is at the Company's sole discretion. The Company's lease agreements typically do not contain any significant guarantees of asset values at the end of a lease or restrictive covenants. Payments within certain lease agreements are adjusted periodically for changes in an index or rate.

The components of lease expense follows:

	Three months ended September 30, 2019			Nine months ended September 30, 2019
Operating lease cost	$	41		$	119
Finance lease cost:
Amortization of lease assets	1			3
Interest on lease liabilities	—			1
Short-term lease cost	13			40
Variable lease cost	6			17
Sublease income	(1		)	(3		)
Total lease cost	$	60		$	177

The net gain recorded on sale leaseback transactions for the nine months ended September 30, 2019 was $16.

Supplemental cash flow information related to leases follows:

	Nine months ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows - payments on operating leases	$	(118	)
Operating cash outflows - interest payments on finance leases	(1		)
Financing cash outflows - payments on finance lease obligations	(3		)
Lease assets obtained in exchange for new lease obligations:
Operating leases	$	95
Finance leases	17

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Supplemental balance sheet information related to leases follows:

	September 30, 2019
Operating Leases
Operating lease assets	$	444
Other current liabilities	124
Operating lease liabilities	333
Total operating lease liabilities	$	457
Finance Leases
Land and buildings	$	16
Machinery and equipment	17
Accumulated depreciation	(14		)
Net property, plant and equipment	$	19
Current portion of long-term debt	$	6
Long-term debt	14
Total finance lease liabilities	$	20
Weighted-average remaining lease term
Operating leases	5.1 years
Finance leases	3.6 years
Weighted-average discount rate
Operating leases	3.6		%
Finance leases	5.9		%

Maturities of lease liabilities at September 30, 2019 follows:

	Operating Leases		Finance Leases
2019	$	40	$	2
2020	137		7
2021	106		6
2022	75		4
2023	50		3
Thereafter	105		1
Total lease payments	$	513	$	23
Less imputed interest	56		3
Total present value of lease liabilities	$	457	$	20

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A summary of minimum rental commitments at December 31, 2018 under noncancelable operating leases, which expire at various dates and in most cases contain renewal options, for each of the next five years and thereafter in the aggregate, follow:

	Operating Leases
2019	$	165
2020	133
2021	106
2022	75
2023	53
Thereafter	110
Total lease commitments	$	642

Note 7. DEBT

On May 14, 2019, a subsidiary of Eaton issued euro denominated notes (2019 Euro Notes) with a face value of €1,100 ($1,232 based on the May 14, 2019 spot rate), in accordance with Regulation S promulgated under the Securities Act of 1933, as amended. The 2019 Euro Notes are comprised of two tranches of €600 and €500, which mature in 2021 and 2025, respectively, with interest payable annually at a respective rate of 0.02% and 0.70%. The issuer received proceeds totaling €1,097 ($1,229 based on the May 14, 2019 spot rate) from the issuance, net of financing costs and discounts. The 2019 Euro Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries. The 2019 Euro Notes contain customary optional redemption and par call provisions. The 2019 Euro Notes also contain a change of control provision which requires the Company to make an offer to purchase all or any part of the 2019 Euro Notes at a purchase price of 101% of the principal amount plus accrued and unpaid interest. The capitalized deferred financing fees are amortized in Interest expense-net over the respective terms of the 2019 Euro Notes. The 2019 Euro Notes are subject to customary non-financial covenants.

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Note 8.    RETIREMENT BENEFITS PLANS

The components of retirement benefits expense follow:

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Three months ended September 30
	2019			2018			2019			2018			2019			2018
Service cost	$	22		$	25		$	14		$	16		$	—		$	1
Interest cost	35			30			13			13			3			3
Expected return on plan assets	(59		)	(63		)	(25		)	(27		)	—			—
Amortization	15			24			10			9			(3		)	(4		)
	13			16			12			11			—			—
Settlements, curtailments and special termination benefits	13			13			2			1			—			—
Total expense	$	26		$	29		$	14		$	12		$	—		$	—
	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Nine months ended September 30
	2019			2018			2019			2018			2019			2018
Service cost	$	68		$	75		$	43		$	48		$	1		$	2
Interest cost	103			91			42			40			10			10
Expected return on plan assets	(176		)	(190		)	(79		)	(80		)	(1		)	(2		)
Amortization	46			71			29			29			(10		)	(10		)
	41			47			35			37			—			—
Settlements, curtailments and special termination benefits	36			38			3			1			—			—
Total expense	$	77		$	85		$	38		$	38		$	—		$	—

The components of retirement benefits expense other than service costs are included in Other (income) expense - net.

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Note 9. LEGAL CONTINGENCIES

Eaton is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations, tax audits, patent infringement, personal injuries, antitrust matters, and employment-related matters. Eaton is also subject to asbestos claims from historic products which may have contained asbestos. Insurance may cover some of the costs associated with these claims and proceedings. Although it is not possible to predict with certainty the outcome or cost of these matters, the Company believes they will not have a material adverse effect on the consolidated financial statements.

In December 2011, Pepsi-Cola Metropolitan Bottling Company, Inc. (“Pepsi”) filed an action against (a) Cooper Industries, LLC, Cooper Industries, Ltd., Cooper Holdings, Ltd., Cooper US, Inc., and Cooper Industries plc (collectively, “Cooper”), (b) M&F Worldwide Corp., Mafco Worldwide Corp., Mafco Consolidated Group LLC, and PCT International Holdings, Inc. (collectively, “Mafco”), and (c) the Pneumo Abex Asbestos Claims Settlement Trust (the “Trust”) in Texas state court. Pepsi alleged that it was harmed by a 2011 settlement agreement (“2011 Settlement”) among Cooper, Mafco, and Pneumo Abex, LLC (“Pneumo,” which prior to the 2011 Settlement was a Mafco subsidiary), which settlement resolved litigation that Pneumo had previously brought against Cooper involving, among other things, a guaranty related to Pneumo’s friction products business. In November 2015, after a Texas court ruled that Pepsi's claims should be heard in arbitration, Pepsi filed a demand for arbitration against Cooper, Mafco, the Trust, and Pneumo. Pepsi subsequently dropped claims against all parties except Cooper. An arbitration under the auspices of the American Arbitration Association commenced in October 2017. Pepsi’s experts opined, among other things, that the value contributed to the Trust for a release of the guaranty was below reasonably equivalent value, and that an inability of Pneumo to satisfy future liabilities could result in plaintiffs suing Pepsi under various theories. Cooper submitted various expert reports and, among other things, Cooper’s experts opined that Pepsi had no basis to seek any damages and that Cooper paid reasonably equivalent value for the release of its indemnity obligations under the guaranty. The arbitration proceedings closed in December 2017. On July 11, 2018, the arbitration panel made certain findings and concluded that the value contributed to the Trust did not constitute reasonably equivalent value, but ordered the parties to recalculate the amount that should have been contributed to the Trust as of the date of the 2011 transaction. Based on the findings made by the panel and the recalculation ordered by the panel, Cooper believed that no additional amount should be contributed. Pepsi argued that an additional $347 should be contributed. Cooper and its expert disagreed with Pepsi’s argument and believed that Pepsi’s recalculation was flawed and failed to comply with the instructions of the panel. On August 23, 2018, the panel issued its final award and ordered Cooper to pay $293 to Pneumo Abex. On August 30, 2018, Pepsi sought to confirm the award in Texas state court, which Cooper opposed on October 9, 2018. Cooper further requested that the court vacate the award on various grounds, including that Cooper was prejudiced by the conduct of the proceedings, the panel exceeded its powers, and because the panel denied Cooper a full and fair opportunity to present certain evidence. The court confirmed the award at the confirmation hearing, which was held on October 12, 2018. On November 2, 2018, the Company appealed. On November 28, 2018, the Company paid $297, the full judgment plus accrued post-judgment interest, to Pneumo Abex and preserved its rights, including to appeal. On April 25, 2019, the appeal that Cooper filed was dismissed.

Note 10. INCOME TAXES

The effective income tax rate for the third quarter and the first nine months of 2019 was expense of 16.0% and 14.5% compared to expense of 5.2% and 10.8% for the third quarter and first nine months of 2018. The increase in the effective tax rate in the third quarter and first nine months of 2019 was primarily due to the inclusion of $69 of tax benefit on the arbitration decision expense recorded during the third quarter of 2018 (discussed in Note 9), as well as greater levels of income in higher tax jurisdictions.

As the Company has previously disclosed, Eaton's United States subsidiaries ("Eaton US") received a Notice in 2014 from the Internal Revenue Service ("IRS") for tax years 2007 through 2010 which included proposed assessments involving two issues: the recognition of income for several of Eaton US's controlled foreign corporations, and transfer pricing adjustments for products manufactured in the Company's facilities in Puerto Rico and the Dominican Republic and sold to affiliated companies located in the United States. The Company believed the proposed assessments were without merit and contested both matters in the United States Tax Court ("Tax Court"). Eaton US and the IRS both moved for partial summary judgment on the controlled foreign corporation income recognition issue. The Tax Court heard oral arguments on the motions in January 2018, following which the Court ordered further briefing, which was completed in March 2018. On February 25, 2019, the Tax Court granted the IRS's motion for partial summary judgment and denied Eaton's. The Company intends to appeal the Tax Court's partial summary judgment decision to the United States Sixth Circuit Court of Appeals. The Company believes that it will be successful on appeal and has not recorded any additional impact of the Tax Court's decision in its consolidated financial statements. As previously disclosed, the transfer pricing issue included in the Notice remains unresolved at this point. The total potential impact of the Tax Court's partial summary judgment decision on the controlled foreign corporation income recognition issue is not estimable until all matters in the open tax years have been resolved.

15

Note 11. EQUITY

On February 24, 2016, the Board of Directors adopted a share repurchase program for share repurchases up to $2,500 of ordinary shares (2016 Program). During the nine months ended September 30, 2018, 7.7 million ordinary shares were repurchased under the 2016 Program in the open market at a total cost of $600. No ordinary shares were repurchased during the three months ended September 30, 2018. On February 27, 2019, the Board of Directors adopted a new share repurchase program for share repurchases up to $5,000 of ordinary shares (2019 Program). Under the 2019 Program, the ordinary shares are expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During the three and nine months ended September 30, 2019, 6.8 million and 11.9 million ordinary shares, respectively, were repurchased under the 2019 Program in the open market at a total cost of $539 and $949, respectively.

The changes in Shareholders’ equity follow:

	Ordinary shares				Capital in excess of par value			Retained earnings			Accumulated other comprehensive loss			Shares held in trust			Total Eaton shareholders' equity			Noncontrolling interests			Total equity
(In millions)	Shares		Dollars
Balance at December 31, 2018	423.6		$	4	$	12,090		$	8,161		$	(4,145	)	$	(3	)	$	16,107		$	35		$	16,142
Net income	—		—		—			522			—			—			522			—			522
Other comprehensive income, net of tax											67						67			—			67
Cash dividends paid and accrued	—		—		—			(309		)	—			—			(309		)	(1		)	(310		)
Issuance of shares under equity-based compensation plans	1.4		—		(5		)	1			—			—			(4		)	—			(4		)
Repurchase of shares	(1.9	)	—		—			(150		)	—			—			(150		)	—			(150		)
Balance at March 31, 2019	423.1		$	4	$	12,085		$	8,225		$	(4,078	)	$	(3	)	$	16,233		$	34		$	16,267
Net income	—		—		—			636			—			—			636			—			636
Other comprehensive loss, net of tax											(30		)				(30		)				(30		)
Cash dividends paid	—		—		—			(300		)	—			—			(300		)	(1		)	(301		)
Issuance of shares under equity-based compensation plans	0.1		—		27			(1		)	—			1			27			—			27
Acquisition of a business	—		—		—			—			—			—			—			51			51
Acquisition of noncontrolling interest obtained through tender offer	—		—		—			—			—			—			—			(29		)	(29		)
Repurchase of Shares	(3.2	)	—		—			(260		)	—			—			(260		)	—			(260		)
Balance at June 30, 2019	420.0		$	4	$	12,112		$	8,300		$	(4,108	)	$	(2	)	$	16,306		$	55		$	16,361
Net income	—		—		—			601			—			—			601			1			602
Other comprehensive loss, net of tax											(259		)				(259		)				(259		)
Cash dividends paid	—		—		—			(298		)	—			—			(298		)	—			(298		)
Issuance of shares under equity-based compensation plans	0.2		—		39			(2		)	—			—			37			—			37
Acquisition of noncontrolling interest obtained through tender offer	—		—		—			—			—			—			—			(4		)	(4		)
Repurchase of Shares	(6.8	)	—		—			(539		)	—			—			(539		)	—			(539		)
Balance at September 30, 2019	413.4		$	4	$	12,151		$	8,062		$	(4,367	)	$	(2	)	$	15,848		$	52		$	15,900

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	Ordinary shares				Capital in excess of par value		Retained earnings			Accumulated other comprehensive loss			Shares held in trust			Total Eaton shareholders' equity			Noncontrolling interests			Total equity
(In millions)	Shares		Dollars
Balance at December 31, 2017	439.9		$	4	$	11,987	$	8,669		$	(3,404	)	$	(3	)	$	17,253		$	37		$	17,290
Cumulative-effect adjustment upon adoption of ASU 2014-09	—		—		—		(2		)	—			—			(2		)	—			(2		)
Cumulative-effect adjustment upon adoption of ASU 2016-16	—		—		—		(199		)	—			—			(199		)	—			(199		)
Net income	—		—		—		488			—			—			488			(1		)	487
Other comprehensive income, net of tax										296						296			—			296
Cash dividends paid and accrued	—		—		—		(290		)	—			—			(290		)	—			(290		)
Issuance of shares under equity-based compensation plans	1.1		—		18		(1		)	—			—			17			—			17
Changes in noncontrolling interest of consolidated subsidiaries - net	—		—		—		—			—			—			—			2			2
Repurchase of shares	(3.7	)	—		—		(300		)	—			—			(300		)	—			(300		)
Balance at March 31, 2018	437.3		$	4	$	12,005	$	8,365		$	(3,108	)	$	(3	)	$	17,263		$	38		$	17,301
Net income	—		—		—		610			—			—			610			1			611
Other comprehensive loss, net of tax	—									(624		)				(624		)				(624		)
Cash dividends paid	—		—		—		(288		)	—			—			(288		)	(1		)	(289		)
Issuance of shares under equity-based compensation plans	—		—		28		—			—			1			29			—			29
Changes in noncontrolling interest of consolidated subsidiaries - net	—		—		—		—			—			—			—			(3		)	(3		)
Repurchase of Shares	(4.0	)	—		—		(300		)	—			—			(300		)	—			(300		)
Balance at June 30, 2018	433.3		$	4	$	12,033	$	8,387		$	(3,732	)	$	(2	)	$	16,690		$	35		$	16,725
Net income	—		—		—		416			—			—			416			—			416
Other comprehensive loss, net of tax										(98		)	—			(98		)	—			(98		)
Cash dividends paid	—		—		—		(286		)	—			—			(286		)	—			(286		)
Issuance of shares under equity-based compensation plans	0.1		—		33		—			—			(1		)	32			—			32
Balance at September 30, 2018	433.4		$	4	$	12,066	$	8,517		$	(3,830	)	$	(3	)	$	16,754		$	35		$	16,789

The changes in Accumulated other comprehensive loss follow:

	Currency translation and related hedging instruments			Pensions and other postretirement benefits			Cash flow hedges			Total
Balance at December 31, 2018	$	(2,864	)	$	(1,278	)	$	(3	)	$	(4,145	)
Other comprehensive (loss) income    before reclassifications	(235		)	7			(72		)	(300		)
Amounts reclassified from Accumulated other    comprehensive loss	—			81			(3		)	78
Net current-period Other comprehensive    (loss) income	(235		)	88			(75		)	(222		)
Balance at September 30, 2019	$	(3,099	)	$	(1,190	)	$	(78	)	$	(4,367	)

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The reclassifications out of Accumulated other comprehensive loss follow:

	Nine months ended September 30, 2019				Consolidated statements of income classification
Amortization of defined benefit pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(104	)	1
Tax benefit	23
Total, net of tax	(81		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	4				Net sales and Cost of products sold
Tax expense	(1		)
Total, net of tax	3
Total reclassifications for the period	$	(78	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 8 for additional information about pension and other postretirement benefits items.

Net Income Per Share Attributable to Eaton Ordinary Shareholders

A summary of the calculation of net income per share attributable to Eaton ordinary shareholders follows:

	Three months ended September 30				Nine months ended September 30
(Shares in millions)	2019		2018		2019		2018
Net income attributable to Eaton ordinary shareholders	$	601	$	416	$	1,759	$	1,514
Weighted-average number of ordinary shares outstanding - diluted	418.4		436.3		422.5		438.4
Less dilutive effect of equity-based compensation	1.8		2.8		1.8		2.6
Weighted-average number of ordinary shares outstanding - basic	416.6		433.5		420.7		435.8
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.44	$	0.95	$	4.16	$	3.45
Basic	1.44		0.96		4.18		3.47

For the third quarter and first nine months of 2019, 0.8 million and 1.1 million stock options, respectively, were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive. For the third quarter and first nine months of 2018, 0.5 million and 0.4 million stock options, respectively, were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive.

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Note 12. FAIR VALUE MEASUREMENTS

Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to satisfy a liability in an orderly transaction between market participants. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a fair value hierarchy is established, which categorizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

A summary of financial instruments recognized at fair value, and the fair value measurements used, follows:

	Total			Level 1		Level 2			Level 3
September 30, 2019
Cash	$	549		$	549	$	—		$	—
Short-term investments	281			281		—			—
Net derivative contracts	(52		)	—		(52		)	—
December 31, 2018
Cash	$	283		$	283	$	—		$	—
Short-term investments	157			157		—			—
Net derivative contracts	14			—		14			—

Eaton values its financial instruments using an industry standard market approach, in which prices and other relevant information is generated by market transactions involving identical or comparable assets or liabilities. No financial instruments were measured using unobservable inputs.

Other Fair Value Measurements

Long-term debt and the current portion of long-term debt had a carrying value of $8,019 and fair value of $8,600 at September 30, 2019 compared to $7,107 and $7,061, respectively, at December 31, 2018. The fair value of Eaton's debt instruments were estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities, and are considered a Level 2 fair value measurement.

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Note 13. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

In the normal course of business, Eaton is exposed to certain risks related to fluctuations in interest rates, currency exchange rates and commodity prices. The Company uses various derivative and non-derivative financial instruments, primarily interest rate swaps, currency forward exchange contracts, currency swaps and, commodity contracts to manage risks from these market fluctuations. The instruments used by Eaton are straightforward, non-leveraged instruments. The counterparties to these instruments are financial institutions with strong credit ratings. Eaton maintains control over the size of positions entered into with any one counterparty and regularly monitors the credit rating of these institutions. Such instruments are not purchased and sold for trading purposes.

Derivative financial instruments are accounted for at fair value and recognized as assets or liabilities in the Consolidated Balance Sheets. Accounting for the gain or loss resulting from the change in the fair value of the derivative financial instrument depends on whether it has been designated, and is effective, as part of a hedging relationship and, if so, as to the nature of the hedging activity. Eaton formally documents all relationships between derivative financial instruments accounted for as designated hedges and the hedged item, as well as its risk-management objective and strategy for undertaking the hedge transaction. This process includes linking derivative financial instruments to a recognized asset or liability, specific firm commitment, forecasted transaction, or net investment in a foreign operation. These financial instruments can be designated as:

• Hedges of the change in the fair value of a recognized fixed-rate asset or liability, or the firm commitment to acquire such an asset or liability (a fair value hedge); for these hedges, the gain or loss from the derivative financial instrument, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in income during the period of change in fair value.

• Hedges of the variable cash flows of a recognized variable-rate asset or liability, or the forecasted acquisition of such an asset or liability (a cash flow hedge); for these hedges, the gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive income and reclassified to income in the same period when the gain or loss on the hedged item is included in income.

• Hedges of the currency exposure related to a net investment in a foreign operation (a net investment hedge); for these hedges, the gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive income and reclassified to income in the same period when the gain or loss related to the net investment in the foreign operation is included in income.

The gain or loss from a derivative financial instrument designated as a hedge is classified in the same line of the Consolidated Statements of Income as the offsetting loss or gain on the hedged item. The cash flows resulting from these financial instruments are classified in operating activities on the Condensed Consolidated Statements of Cash Flows.

For derivatives that are not designated as a hedge, any gain or loss is immediately recognized in income. The majority of derivatives used in this manner relate to risks resulting from assets or liabilities denominated in a foreign currency and certain commodity contracts that arise in the normal course of business.

Eaton uses certain of its debt denominated in foreign currency to hedge portions of its net investments in foreign operations against foreign currency exposure (net investment hedges). Foreign currency denominated debt designated as a non-derivative net investment hedging instrument had a carrying value on a pre-tax basis of $1,788 at September 30, 2019 and $623 at December 31, 2018.

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Derivative Financial Statement Impacts

The fair value of derivative financial instruments recognized in the Consolidated Balance Sheets follows:

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
September 30, 2019
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	2,225	$	—	$	71	$	—	$	—	Fair value	15 months to 16 years
Forward starting floating-to-fixed  interest rate swaps	500		—		1		—		77		Cash flow	14 to 34 years
Currency exchange contracts	1,104		11		—		17		14		Cash flow	1 to 36 months
Commodity contracts	11		—		—		—		—		Cash flow	1 to 7 months
Total			$	11	$	72	$	17	$	91
Derivatives not designated as  hedges
Currency exchange contracts	$	4,364	$	14			$	41				1 to 12 months
Total			$	14			$	41
December 31, 2018
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	2,550	$	—	$	22	$	1	$	26	Fair value	3 months to 16 years
Forward starting floating-to-fixed  interest rate swaps	100		—		—		—		3		Cash flow	34 years
Currency exchange contracts	951		19		2		11		8		Cash flow	1 to 36 months
Total			$	19	$	24	$	12	$	37
Derivatives not designated as  hedges
Currency exchange contracts	$	3,886	$	40			$	20				1 to 12 months
Total			$	40			$	20

The currency exchange contracts shown in the table above as derivatives not designated as hedges are primarily contracts entered into to manage currency volatility or exposure on intercompany receivables, payables and loans. While Eaton does not elect hedge accounting treatment for these derivatives, Eaton targets managing 100% of the intercompany balance sheet exposure to minimize the effect of currency volatility related to the movement of goods and services in the normal course of its operations. This activity represents the great majority of these currency exchange contracts.

21

As of September 30, 2019, the volume of outstanding commodity contracts that were entered into to hedge forecasted transactions:

	September 30, 2019
Commodity	(millions of pounds)	Term
Copper	4	1 to 7 months

The following amounts were recorded on the Consolidated Balance Sheets related to fixed-to-floating interest rate swaps:

	Carrying amount of the hedged assets (liabilities)			Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged asset (liabilities) (a)
Location on Consolidated Balance Sheets	September 30, 2019			September 30, 2019
Long-term debt	$	(2,838	)	$	(112	)

^(a) At September 30, 2019, these amounts include the cumulative liability amount of fair value hedging adjustments remaining for which the hedge accounting has been discontinued of $41.

The impact of hedging activities to the Consolidated Statements of Income are as follow:

	Three months ended September 30, 2019
	Net Sales			Cost of products sold			Interest expense - net
Amounts from Consolidated Statements of Income	$	5,314		$	3,512		$	54
Gain (loss) on derivatives designated as cash flow hedges
Currency exchange contracts
Hedged item	$	1		$	(1	)	$	—
Derivative designated as hedging instrument	(1		)	1			—
Commodity contracts
Hedged item	$	—		$	—		$	—
Derivative designated as hedging instrument	—			—			—
Gain (loss) on derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps
Hedged item	$	—		$	—		$	(13	)
Derivative designated as hedging instrument	—			—			13

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	Nine months ended September 30, 2019
	Net Sales			Cost of products sold			Interest expense - net
Amounts from Consolidated Statements of Income	$	16,152		$	10,782		$	183
Gain (loss) on derivatives designated as cash flow hedges
Currency exchange contracts
Hedged item	$	6		$	(10	)	$	—
Derivative designated as hedging instrument	(6		)	10			—
Commodity contracts
Hedged item	$	—		$	—		$	—
Derivative designated as hedging instrument	—			—			—
Gain (loss) on derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps
Hedged item	$	—		$	—		$	(76	)
Derivative designated as hedging instrument	—			—			76

The impact of derivatives not designated as hedges to the Consolidated Statements of Income are as follow:

	Gain (loss) recognized in Consolidated Statements of Income			Consolidated Statements of Income classification
	Three months ended September 30
	2019
Gain (loss) on derivatives not designated as hedges
Currency exchange contracts	$	(40	)	Other expense - net
Commodity Contracts	1			Cost of products sold
Total	$	(39	)
	Gain (loss) recognized in Consolidated Statements of Income			Consolidated Statements of Income classification
	Nine months ended September 30
	2019
Gain (loss) on derivatives not designated as hedges
Currency exchange contracts	$	8		Other income - net
Commodity Contracts	1			Cost of products sold
Total	$	9

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The impact of derivative and non-derivative instruments designated as hedges to the Consolidated Statements of Income and Comprehensive Income follow:

	Gain (loss) recognized in other comprehensive (loss) income						Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Three months ended September 30							Three months ended September 30
	2019			2018				2019		2018
Derivatives designated as    cash flow hedges
Forward starting floating-to-fixed  interest rate swaps	$	(46	)	$	—		Interest expense - net	$	—	$	—
Currency exchange contracts	(8		)	(12		)	Net sales and Cost of products sold	—		(4		)
Commodity contracts	—			—			Cost of products sold	—		—
Non-derivative designated as net    investment hedges
Foreign currency denominated debt	3			5			Other income - net	—		—
Total	$	(51	)	$	(7	)		$	—	$	(4	)
	Gain (loss) recognized in other comprehensive (loss) income						Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Nine months ended September 30							Nine months ended September 30
	2019			2018				2019		2018
Derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps	$	(73	)	$	—		Interest expense - net	$	—	$	—
Currency exchange contracts	(18		)	(14		)	Net sales and Cost of products sold	4		(12		)
Commodity contracts	—			—			Cost of products sold	—		—
Non-derivative designated as net    investment hedges
Foreign currency denominated debt	15			22			Other income - net	—		—
Total	$	(76	)	$	8			$	4	$	(12	)

At September 30, 2019 and September 30, 2018, losses of $5 and $9, respectively, of estimated unrealized net gains or losses associated with our cash flow hedges were expected to be reclassified to income from Accumulated other comprehensive loss within the next twelve months. These reclassifications relate to our designated foreign currency and commodity hedges that will mature in the next 12 months.

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Note 14.    INVENTORY

Inventory is carried at lower of cost or net realizable value. The components of inventory follow:

	September 30, 2019		December 31, 2018
Raw materials	$	1,094	$	1,077
Work-in-process	578		500
Finished goods	1,229		1,208
Total inventory	$	2,901	$	2,785

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Note 15. BUSINESS SEGMENT INFORMATION

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance. Eaton’s operating segments are Electrical Products, Electrical Systems and Services, Hydraulics, Aerospace, Vehicle, and eMobility. Operating profit includes the operating profit from intersegment sales. For additional information regarding Eaton’s business segments, see Note 16 to the Consolidated Financial Statements contained in the 2018 Form 10-K.

	Three months ended September 30						Nine months ended September 30
	2019			2018			2019			2018
Net sales
Electrical Products	$	1,786		$	1,789		$	5,395		$	5,327
Electrical Systems and Services	1,572			1,519			4,618			4,413
Hydraulics	603			670			1,987			2,103
Aerospace	513			478			1,532			1,399
Vehicle	761			876			2,374			2,668
eMobility	79			80			246			240
Total net sales	$	5,314		$	5,412		$	16,152		$	16,150
Segment operating profit
Electrical Products	$	358		$	343		$	1,050		$	984
Electrical Systems and Services	284			234			751			628
Hydraulics	72			94			232			285
Aerospace	129			105			372			284
Vehicle	139			166			397			464
eMobility	4			10			16			35
Total segment operating profit	986			952			2,818			2,680
Corporate
Amortization of intangible assets	(93		)	(95		)	(280		)	(289		)
Interest expense - net	(54		)	(67		)	(183		)	(205		)
Pension and other postretirement benefits expense	(5		)	(3		)	(7		)	(4		)
Arbitration decision expense	—			(275		)	—			(275		)
Other corporate expense - net	(116		)	(73		)	(289		)	(209		)
Income before income taxes	718			439			2,059			1,698
Income tax expense	116			23			299			184
Net income	602			416			1,760			1,514
Less net income for noncontrolling interests	(1		)	—			(1		)	—
Net income attributable to Eaton ordinary shareholders	$	601		$	416		$	1,759		$	1,514

26

Note 16. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The Registered Senior Notes issued by Eaton Corporation are registered under the Securities Act of 1933. Eaton and certain of Eaton's 100% owned direct and indirect subsidiaries (the Guarantors) fully and unconditionally guaranteed (subject, in the case of the Guarantors, other than Eaton, to customary release provisions as described below), on a joint and several basis, the Registered Senior Notes. The following condensed consolidating financial statements are included so that separate financial statements of Eaton, Eaton Corporation and each of the Guarantors are not required to be filed with the Securities and Exchange Commission. The consolidating adjustments primarily relate to eliminations of investments in subsidiaries and intercompany balances and transactions. The condensed consolidating financial statements present investments in subsidiaries using the equity method of accounting. See Note 7 of Eaton's 2018 Form 10-K for additional information related to the Registered Senior Notes.

The guarantee of a Guarantor that is not a parent of the issuer will be automatically and unconditionally released and discharged in the event of any sale of the Guarantor or of all or substantially all of its assets, or in connection with the release or termination of the Guarantor as a guarantor under all other U.S. debt securities or U.S. syndicated credit facilities, subject to limitations set forth in the indenture. The guarantee of a Guarantor that is a direct or indirect parent of the issuer will only be automatically and unconditionally released and discharged in connection with the release or termination of such Guarantor as a guarantor under all other debt securities or syndicated credit facilities (in both cases, U.S. or otherwise), subject to limitations set forth in the indenture.

During 2019 and 2018, the Company undertook certain steps to restructure ownership of various subsidiaries. The transactions were entirely among wholly-owned subsidiaries under the common control of Eaton. These restructurings have been reflected as of the beginning of the earliest period presented below.

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,744		$	1,826		$	2,996		$	(1,252	)	$	5,314
Cost of products sold	—			1,339			1,301			2,127			(1,255		)	3,512
Selling and administrative expense	2			368			199			316			—			885
Research and development expense	—			37			35			75			—			147
Interest expense (income) - net	—			59			5			(10		)	—			54
Other expense (income) - net	1			3			2			(8		)	—			(2		)
Equity in loss (earnings) of    subsidiaries, net of tax	(611		)	(217		)	(797		)	(677		)	2,302			—
Intercompany expense (income) - net	7			(50		)	513			(470		)	—			—
Income (loss) before income taxes	601			205			568			1,643			(2,299		)	718
Income tax expense (benefit)	—			3			(27		)	139			1			116
Net income (loss)	601			202			595			1,504			(2,300		)	602
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	601		$	202		$	595		$	1,503		$	(2,300	)	$	601
Other comprehensive income (loss)	$	(259	)	$	(26	)	$	(268	)	$	(705	)	$	999		$	(259	)
Total comprehensive income   (loss) attributable to Eaton   ordinary shareholders	$	342		$	176		$	327		$	798		$	(1,301	)	$	342

27

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,808		$	1,814		$	3,134		$	(1,344	)	$	5,412
Cost of products sold	—			1,419			1,320			2,202			(1,344		)	3,597
Selling and administrative expense	3			356			197			333			—			889
Research and development expense	—			33			37			68			—			138
Interest expense (income) - net	—			68			3			(4		)	—			67
Arbitration decision expense	—			—			275			—			—			275
Other expense (income) - net	(3		)	11			4			(5		)	—			7
Equity in loss (earnings) of    subsidiaries, net of tax	(430		)	(191		)	(892		)	(433		)	1,946			—
Intercompany expense (income) - net	14			33			579			(626		)	—			—
Income (loss) before income taxes	416			79			291			1,599			(1,946		)	439
Income tax expense (benefit)	—			(10		)	(91		)	124			—			23
Net income (loss)	416			89			382			1,475			(1,946		)	416
Less net loss (income) for    noncontrolling interests	—			—			—			—			—			—
Net income (loss) attributable to    Eaton ordinary shareholders	$	416		$	89		$	382		$	1,475		$	(1,946	)	$	416
Other comprehensive income (loss)	$	(98	)	$	(22	)	$	(94	)	$	(240	)	$	356		$	(98	)
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	318		$	67		$	288		$	1,235		$	(1,590	)	$	318

28

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	5,326		$	5,548		$	9,168		$	(3,890	)	$	16,152
Cost of products sold	—			4,150			3,967			6,552			(3,887		)	10,782
Selling and administrative expense	8			1,089			609			1,003			—			2,709
Research and development expense	—			113			110			231			—			454
Interest expense (income) - net	—			194			14			(23		)	(2		)	183
Other expense (income) - net	(12		)	1			(20		)	(4		)	—			(35		)
Equity in loss (earnings) of    subsidiaries, net of tax	(1,785		)	(699		)	(2,359		)	(2,072		)	6,915			—
Intercompany expense (income) - net	30			(48		)	1,386			(1,368		)	—			—
Income (loss) before income taxes	1,759			526			1,841			4,849			(6,916		)	2,059
Income tax expense (benefit)	—			18			(62		)	343			—			299
Net income (loss)	1,759			508			1,903			4,506			(6,916		)	1,760
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	1,759		$	508		$	1,903		$	4,505		$	(6,916	)	$	1,759
Other comprehensive income (loss)	$	(222	)	$	(22	)	$	(215	)	$	(612	)	$	849		$	(222	)
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	1,537		$	486		$	1,688		$	3,893		$	(6,067	)	$	1,537

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	5,306		$	5,304		$	9,567		$	(4,027	)	$	16,150
Cost of products sold	—			4,198			3,845			6,824			(4,026		)	10,841
Selling and administrative expense	8			1,093			575			1,003			—			2,679
Research and development expense	—			109			113			217			—			439
Interest expense (income) - net	—			203			11			(11		)	2			205
Arbitration decision expense	—			—			275			—			—			275
Other expense (income) - net	(22		)	25			31			(21		)	—			13
Equity in loss (earnings) of    subsidiaries, net of tax	(1,531		)	(628		)	(2,588		)	(1,716		)	6,463			—
Intercompany expense (income) - net	31			35			1,623			(1,689		)	—			—
Income (loss) before income taxes	1,514			271			1,419			4,960			(6,466		)	1,698
Income tax expense (benefit)	—			(23		)	(119		)	327			(1		)	184
Net income (loss)	1,514			294			1,538			4,633			(6,465		)	1,514
Less net loss (income) for    noncontrolling interests	—			—			—			—			—			—
Net income (loss) attributable to    Eaton ordinary shareholders	$	1,514		$	294		$	1,538		$	4,633		$	(6,465	)	$	1,514
Other comprehensive income (loss)	$	(426	)	$	(37	)	$	(394	)	$	(1,012	)	$	1,443		$	(426	)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	1,088		$	257		$	1,144		$	3,621		$	(5,022	)	$	1,088

29

CONDENSED CONSOLIDATING BALANCE SHEETS SEPTEMBER 30, 2019
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	222	$	—	$	327	$	—		$	549
Short-term investments	—		—		—		281		—			281
Accounts receivable - net	—		475		1,289		2,023		—			3,787
Intercompany accounts    receivable	9		855		1,957		2,681		(5,502		)	—
Inventory	—		577		857		1,546		(79		)	2,901
Prepaid expenses and    other current assets	—		100		32		347		15			494
Total current assets	9		2,229		4,135		7,205		(5,566		)	8,012
Property, plant and    equipment - net	—		851		669		1,963		—			3,483
Other noncurrent assets
Goodwill	—		1,330		6,705		5,302		—			13,337
Other intangible assets	—		123		2,941		1,593		—			4,657
Operating lease assets	—		159		62		223		—			444
Deferred income taxes	—		351		—		278		(335		)	294
Investment in subsidiaries	16,939		26,627		73,052		27,306		(143,924		)	—
Intercompany loans receivable	9		5,736		7,334		60,233		(73,312		)	—
Other assets	—		778		159		731		—			1,668
Total assets	$	16,957	$	38,184	$	95,057	$	104,834	$	(223,137	)	$	31,895
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	2	$	—		$	2
Current portion of    long-term debt	—		4		—		2		—			6
Accounts payable	—		494		508		1,288		—			2,290
Intercompany accounts payable	9		1,355		2,981		1,157		(5,502		)	—
Accrued compensation	—		99		59		263		—			421
Other current liabilities	1		588		269		1,086		(2		)	1,942
Total current liabilities	10		2,540		3,817		3,798		(5,504		)	4,661
Noncurrent liabilities
Long-term debt	—		5,900		2,107		6		—			8,013
Pension liabilities	—		378		127		734		—			1,239
Other postretirement    benefits liabilities	—		167		82		73		—			322
Operating lease liabilities	—		116		47		170		—			333
Deferred income taxes	—		—		458		186		(335		)	309
Intercompany loans payable	1,099		5,272		65,822		1,119		(73,312		)	—
Other noncurrent liabilities	—		454		304		360		—			1,118
Total noncurrent liabilities	1,099		12,287		68,947		2,648		(73,647		)	11,334
Shareholders’ equity
Eaton shareholders' equity	15,848		23,357		22,293		98,336		(143,986		)	15,848
Noncontrolling interests	—		—		—		52		—			52
Total equity	15,848		23,357		22,293		98,388		(143,986		)	15,900
Total liabilities and equity	$	16,957	$	38,184	$	95,057	$	104,834	$	(223,137	)	$	31,895

30

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2018
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	21	$	—	$	261	$	—		$	283
Short-term investments	—		—		—		157		—			157
Accounts receivable - net	—		483		1,400		1,975		—			3,858
Intercompany accounts    receivable	—		1,575		1,851		2,968		(6,394		)	—
Inventory	—		540		766		1,555		(76		)	2,785
Prepaid expenses and    other current assets	—		107		32		354		14			507
Total current assets	1		2,726		4,049		7,270		(6,456		)	7,590
Property, plant and    equipment - net	—		843		678		1,946		—			3,467
Other noncurrent assets
Goodwill	—		1,330		6,705		5,293		—			13,328
Other intangible assets	—		128		3,054		1,664		—			4,846
Deferred income taxes	—		340		—		288		(335		)	293
Investment in subsidiaries	16,476		25,956		71,334		25,557		(139,323		)	—
Intercompany loans receivable	1,508		5,912		8,406		59,078		(74,904		)	—
Other assets	—		746		117		705		—			1,568
Total assets	$	17,985	$	37,981	$	94,343	$	101,801	$	(221,018	)	$	31,092
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	388	$	—	$	26	$	—		$	414
Current portion of    long-term debt	—		338		—		1		—			339
Accounts payable	—		476		416		1,238		—			2,130
Intercompany accounts payable	32		1,127		3,206		2,029		(6,394		)	—
Accrued compensation	—		135		71		251		—			457
Other current liabilities	30		525		259		1,002		(2		)	1,814
Total current liabilities	62		2,989		3,952		4,547		(6,396		)	5,154
Noncurrent liabilities
Long-term debt	—		5,814		945		7		2			6,768
Pension liabilities	—		383		130		791		—			1,304
Other postretirement    benefits liabilities	—		166		83		72		—			321
Deferred income taxes	—		1		508		175		(335		)	349
Intercompany loans payable	1,816		5,182		66,507		1,399		(74,904		)	—
Other noncurrent liabilities	—		389		291		374		—			1,054
Total noncurrent liabilities	1,816		11,935		68,464		2,818		(75,237		)	9,796
Shareholders’ equity
Eaton shareholders' equity	16,107		23,057		21,927		94,401		(139,385		)	16,107
Noncontrolling interests	—		—		—		35		—			35
Total equity	16,107		23,057		21,927		94,436		(139,385		)	16,142
Total liabilities and equity	$	17,985	$	37,981	$	94,343	$	101,801	$	(221,018	)	$	31,092

31

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(67	)	$	980		$	415		$	1,186		$	—		$	2,514
Investing activities
Capital expenditures for property,    plant and equipment	—			(74		)	(88		)	(279		)	—			(441		)
Cash paid for acquisitions of businesses, net of cash acquired	—			—			(30		)	(247		)	—			(277		)
Sales (purchases) of short-term investments - net	—			—			—			(132		)	—			(132		)
Loans to affiliates	—			(470		)	(280		)	(5,044		)	5,794			—
Repayments of loans from affiliates	—			663			—			3,156			(3,819		)	—
Proceeds (payments) for settlement of currency exchange contracts not designated as hedges - net	—			—			—			26			—			26
Other - net	—			(21		)	32			(19		)	—			(8		)
Net cash provided by (used in) investing activities	—			98			(366		)	(2,539		)	1,975			(832		)
Financing activities
Proceeds from borrowings	—			—			1,232			—			—			1,232
Payments on borrowings	—			(726		)	—			(31		)	—			(757		)
Proceeds from borrowings from    affiliates	1,927			2,689			428			750			(5,794		)	—
Payments on borrowings from    affiliates	(16		)	(2,781		)	(458		)	(564		)	3,819			—
Other intercompany financing    activities	—			(23		)	(1,239		)	1,262			—			—
Cash dividends paid	(907		)	—			—			—			—			(907		)
Exercise of employee stock options	40			—			—			—			—			40
Repurchase of shares	(978		)	—			—			—			—			(978		)
Employee taxes paid from shares withheld	—			(36		)	(6		)	(3		)	—			(45		)
Other - net	—			—			(6		)	(2		)	—			(8		)
Net cash provided by (used in)    financing activities	66			(877		)	(49		)	1,412			(1,975		)	(1,423		)
Effect of currency on cash	—			—			—			7			—			7
Total increase (decrease) in cash	(1		)	201			—			66			—			266
Cash at the beginning of the period	1			21			—			261			—			283
Cash at the end of the period	$	—		$	222		$	—		$	327		$	—		$	549

32

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(11	)	$	(174	)	$	393		$	1,718		$	(88	)	$	1,838
Investing activities
Capital expenditures for property,    plant and equipment	—			(75		)	(74		)	(262		)	—			(411		)
Sales (purchases) of short-term investments - net	—			—			—			329			—			329
Investments in affiliates	—			(36		)	—			—			36			—
Loans to affiliates	—			(100		)	(84		)	(4,764		)	4,948			—
Repayments of loans from affiliates	—			647			956			3,893			(5,496		)	—
Proceeds (payments) for settlement of currency exchange contracts not designated as hedges - net	—			11			—			(133		)	—			(122		)
Other - net	—			(26		)	3			(29		)	—			(52		)
Net cash provided by (used in)    investing activities	—			421			801			(966		)	(512		)	(256		)
Financing activities
Proceeds from borrowings	4			65			—			11			—			80
Payments on borrowings	—			(450		)	(35		)	(1		)	—			(486		)
Proceeds from borrowings from    affiliates	2,671			1,995			183			99			(4,948		)	—
Payments on borrowings from    affiliates	(1,227		)	(2,775		)	(654		)	(840		)	5,496			—
Capital contributions from affiliates	—			—			—			36			(36		)	—
Other intercompany financing activities	—			788			(687		)	(101		)	—			—
Cash dividends paid	(864		)	—			—			—			—			(864		)
Cash dividends paid to affiliates	—			—			—			(88		)	88			—
Exercise of employee stock options	28			—			—			—			—			28
Repurchase of shares	(600		)	—			—			—			—			(600		)
Employee taxes paid from shares withheld	—			(16		)	(5		)	(3		)	—			(24		)
Other - net	—			(1		)	—			(1		)	—			(2		)
Net cash provided by (used in)    financing activities	12			(394		)	(1,198		)	(888		)	600			(1,868		)
Effect of currency on cash	—			—			—			52			—			52
Total increase (decrease) in cash	1			(147		)	(4		)	(84		)	—			(234		)
Cash at the beginning of the period	—			183			18			360			—			561
Cash at the end of the period	$	1		$	36		$	14		$	276		$	—		$	327

33

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Amounts are in millions of dollars or shares unless indicated otherwise (per share data assume dilution).

COMPANY OVERVIEW

Eaton Corporation plc (Eaton or the Company) is a power management company with 2018 net sales of $21.6 billion. The Company provides energy-efficient solutions that help its customers effectively manage electrical, hydraulic, and mechanical power more reliably, safely, and sustainably. Eaton has approximately 100,000 employees in over 59 countries and sells products to customers in more than 175 countries.

Summary of Results of Operations

A summary of Eaton’s Net sales, Net income attributable to Eaton ordinary shareholders, and Net income per share attributable to Eaton ordinary shareholders - diluted follows:

	Three months ended September 30				Nine months ended September 30
	2019		2018		2019		2018
Net sales	$	5,314	$	5,412	$	16,152	$	16,150
Net income attributable to Eaton ordinary shareholders	601		416		1,759		1,514
Net income per share attributable to Eaton ordinary shareholders - diluted	$	1.44	$	0.95	$	4.16	$	3.45

On April 15, 2019, Eaton completed the acquisition of an 82.275% controlling interest in Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S. (Ulusoy Elektrik), a leading manufacturer of electrical switchgear based in Ankara, Turkey, with a primary focus on medium-voltage solutions for industrial and utility customers. Its sales for the 12 months ended September 30, 2018 were $126. The purchase price for the shares is approximately $214 on a cash and debt free basis. As required by the Turkish capital markets legislation, Eaton filed an application to execute a mandatory tender offer for the remaining shares shortly after the transaction closed. During the tender offer, Eaton purchased additional shares for $33 through July 2019 to increase its ownership interest to 93.7%. Ulusoy Elektrik is reported within the Electrical Systems and Services business segment.

On July 19, 2019, Eaton acquired Innovative Switchgear Solutions, Inc. (ISG), a specialty manufacturer of medium-voltage electrical equipment serving the North American utility, commercial and industrial markets. Its 2018 sales were approximately $18. ISG will be reported within the Electrical Systems and Services business segment.

On July 22, 2019, Eaton committed to acquire the Souriau-Sunbank Connection Technologies (Souriau-Sunbank) business of TransDigm Group Inc. for $920. Headquartered in Versailles, France, Souriau-Sunbank is a global leader in highly engineered electrical interconnect solutions for harsh environments in the aerospace, defense, industrial, energy, and transport markets. Its sales for the 12 months ended June 30, 2019 were $363. The purchase agreement was signed on October 28, 2019. The transaction is subject to customary closing conditions and is expected to close by the end of 2019.

On March 1, 2019, Eaton announced it plans to pursue a tax-free spin-off of its Lighting business. On October 15, 2019, Eaton entered into an agreement to sell its Lighting business to Signify N.V. for a cash purchase price of $1.4 billion. The decision to sell the Lighting business comes after completing a comprehensive review of various potential transaction alternatives. The Lighting business, which had sales of $1.7 billion in 2018 as part of the Electrical Products segment, serves customers in commercial, industrial, residential and municipal markets. Eaton expects the Lighting business to be classified as held for sale during the fourth quarter of 2019. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2020.

On March 1, 2019, Eaton announced it plans to sell its Automotive Fluid Conveyance business.

34

RESULTS OF OPERATIONS

Non-GAAP Financial Measures

The following discussion of Consolidated Financial Results and Business Segment Results of Operations includes certain non-GAAP financial measures. These financial measures include adjusted earnings, adjusted earnings per ordinary share, and operating profit before acquisition integration and divestiture charges for each business segment as well as corporate, each of which differs from the most directly comparable measure calculated in accordance with generally accepted accounting principles (GAAP). A reconciliation of adjusted earnings and adjusted earnings per ordinary share to the most directly comparable GAAP measure is included in the table below. Operating profit before acquisition integration and divestiture charges is reconciled in the discussion of the operating results of each business segment, and excludes acquisition integration and divestiture expense related primarily to the planned divestiture of the Lighting business and the acquisitions of Ulusoy Elektrik and ISG discussed in Note 2. Management believes that these financial measures are useful to investors because they exclude certain transactions, allowing investors to more easily compare Eaton’s financial performance period to period. Management uses this information in monitoring and evaluating the on-going performance of Eaton and each business segment. For additional information on acquisition integration and divestiture charges, see Note 3 to the Condensed Consolidated Financial Statements.

Consolidated Financial Results

	Three months ended September 30						Increase (decrease)		Nine months ended September 30						Increase (decrease)
	2019			2018					2019			2018
Net sales	$	5,314		$	5,412		(2	)%	$	16,152		$	16,150		—	%
Gross profit	1,802			1,815			(1	)%	5,370			5,309			1	%
Percent of net sales	33.9		%	33.5		%			33.2		%	32.9		%
Income before income taxes	718			439			64	%	2,059			1,698			21	%
Net income	602			416			45	%	1,760			1,514			16	%
Less net income for noncontrolling interests	(1		)	—					(1		)	—
Net income attributable to Eaton    ordinary shareholders	601			416			44	%	1,759			1,514			16	%
Excluding acquisition integration and divestiture charges, after-tax (Note 3)	35			—					60			—
Adjusted earnings	$	636		$	416		53	%	$	1,819		$	1,514		20	%
Net income per share attributable to Eaton ordinary shareholders - diluted	$	1.44		$	0.95		52	%	$	4.16		$	3.45		21	%
Excluding per share impact of acquisition    integration and divestiture charges, after-tax    (Note 3)	0.08			—					0.14			—
Adjusted earnings per ordinary share	$	1.52		$	0.95		60	%	$	4.30		$	3.45		25	%

Net Sales

Net sales decreased 2% in the third quarter of 2019 compared to the third quarter of 2018 due to a decrease of 1% in organic sales and a decrease of 1.5% from the impact of negative currency translation, partially offset by an increase of 0.5% from the acquisitions of businesses. The decrease in organic sales in the third quarter of 2019 was primarily due to lower sales volumes in the Vehicle and Hydraulics business segments, partially offset by higher sales volumes in the Electrical Products, Electrical Systems and Services, and Aerospace business segments. Net sales were flat in the first nine months of 2019 compared to the first nine months of 2018 due to an increase of 2% in organic sales, offset by a decrease of 2% from the impact of negative currency translation. Organic sales grew in the first nine months of 2019 due to higher sales volumes in the Electrical Products, Electrical Systems and Services, and Aerospace business segments, partially offset by lower sales volumes in the Vehicle and Hydraulics business segments.

35

Gross Profit

Gross profit margin increased from 33.5% in the third quarter of 2018 to 33.9% in the third quarter of 2019, and from 32.9% in the first nine months of 2018 to 33.2% in the first nine months of 2019. The increase in gross profit margin in the third quarter and first nine months of 2019 was primarily due to higher sales volumes and other operating improvements in Electrical Products and Electrical Systems and Services business segments, and higher sales volumes and favorable product mix in the Aerospace business segment, partially offset by lower sales volumes in the Vehicle and Hydraulics business segments.

Income Taxes

The effective income tax rate for the third quarter and the first nine months of 2019 was expense of 16.0% and 14.5% compared to expense of 5.2% and 10.8% for the third quarter and first nine months of 2018. The increase in the effective tax rate in the third quarter and first nine months of 2019 was primarily due to the inclusion of $69 of tax benefit on the arbitration decision expense recorded during the third quarter of 2018 (discussed in Note 9), as well as greater levels of income in higher tax jurisdictions.

Net Income

Net income attributable to Eaton ordinary shareholders of $601 in the third quarter of 2019 increased 44% compared to Net income attributable to Eaton ordinary shareholders of $416 in the third quarter of 2018. Net income attributable to Eaton ordinary shareholders of $1,759 in the first nine months of 2019 increased 16% compared to Net income attributable to Eaton ordinary shareholders of $1,514 in the first nine months of 2018. Net income in 2018 included after-tax expense of $206 from the arbitration decision discussed in Note 9. Excluding this item, the decrease in the third quarter of 2019 was primarily due to lower sales volumes, higher acquisition integration and divestiture charges, and a higher effective income tax rate. Excluding the 2018 arbitration decision, the increase in the first nine months of 2019 was primarily due to higher sales volumes, partially offset by a higher effective income tax rate.

Net income per ordinary share in the third quarter and first nine months of 2018 both included $0.48 from the impact of the arbitration decision discussed in Note 9. Net income per ordinary share increased to $1.44 in the third quarter of 2019 compared to $0.95 in the third quarter of 2018. Net income per ordinary share increased to $4.16 in the first nine months of 2019 compared to $3.45 in the first nine months of 2018. The increase in the Net income per ordinary share in the third quarter and first nine months of 2019 was due to higher Net income attributable to Eaton ordinary shareholders and the impact of the Company's share repurchases over the past year.

Adjusted Earnings

Adjusted earnings of $636 in the third quarter of 2019 increased 53% compared to Adjusted earnings of $416 in the third quarter of 2018. Adjusted earnings of $1,819 in the first nine months of 2019 increased 20% compared to Adjusted earnings of $1,514 in the first nine months of 2018. The increase in Adjusted earnings in the third quarter and first nine months of 2019 was primarily due to higher Net income attributable to Eaton ordinary shareholders excluding higher acquisition integration and divestiture charges.

Adjusted earnings per ordinary share increased to $1.52 in the third quarter of 2019 compared to $0.95 in the third quarter of 2018. Adjusted earnings per ordinary share increased to $4.30 first nine months of 2019 compared to $3.45 in the first nine months of 2018. The increase in Adjusted earnings per ordinary share in the third quarter and first nine months of 2019 was due to higher Adjusted earnings and the impact of the Company's share repurchases over the past year.

36

Business Segment Results of Operations

The following is a discussion of Net sales, operating profit and operating margin by business segment, which includes a discussion of operating profit and operating profit margin before acquisition integration and divestiture charges. For additional information related to acquisition integration and divestiture charges, see Note 3 to the Condensed Consolidated Financial Statements.

Electrical Products

	Three months ended September 30						Increase (decrease)		Nine months ended September 30						Increase (decrease)
	2019			2018					2019			2018
Net sales	$	1,786		$	1,789		—	%	$	5,395		$	5,327		1	%
Operating profit	$	358		$	343		4	%	$	1,050		$	984		7	%
Operating margin	20.0		%	19.2		%			19.5		%	18.5		%
Acquisition integration and divestiture charges	$	4		$	—				$	6		$	—
Before acquisition integration and divestiture charges
Operating profit	$	362		$	343		6	%	$	1,056		$	984		7	%
Operating margin	20.3		%	19.2		%			19.6		%	18.5		%

Net sales were flat in the third quarter of 2019 compared to the third quarter of 2018 due to an increase of 1% in organic sales, offset by a decrease of 1% from the impact of negative currency translation. Organic sales grew in the third quarter of 2019 primarily driven by strength in residential and commercial construction markets in North America, partially offset by a decline in industrial controls globally. Net sales increased 1% in the first nine months of 2019 compared to the first nine months of 2018 due to an increase of 3% in organic sales, partially offset by a decrease of 2% from the impact of negative currency translation. Organic sales grew in the first of nine months of 2019 in North America, primarily driven by growth in commercial, residential and industrial applications.

The operating margin increased from 19.2% in the third quarter of 2018 to 20.0% in the third quarter of 2019 and from 18.5% in the first nine months of 2018 to 19.5% in the first nine months of 2019 primarily due to higher sales volumes and other operating improvements.

The operating margin before acquisition integration and divestiture charges increased from 19.2% in the third quarter of 2018 to 20.3% in the third quarter of 2019 and from 18.5% in the first nine months of 2018 to 19.6% in the first nine months of 2019 primarily due to an increase in the operating margin.

37

Electrical Systems and Services

	Three months ended September 30						Increase (decrease)		Nine months ended September 30						Increase (decrease)
	2019			2018					2019			2018
Net sales	$	1,572		$	1,519		3	%	$	4,618		$	4,413		5	%
Operating profit	$	284		$	234		21	%	$	751		$	628		20	%
Operating margin	18.1		%	15.4		%			16.3		%	14.2		%
Acquisition integration and divestiture charges	$	3		$	—				$	4		$	—
Before acquisition integration and divestiture charges
Operating profit	$	287		$	234		23	%	$	755		$	628		20	%
Operating margin	18.3		%	15.4		%			16.3		%	14.2		%

Net sales increased 3% in the third quarter of 2019 compared to the third quarter of 2018 due to an increase of 3% in organic sales and an increase of 1.5% from the acquisitions of businesses, partially offset by a decrease of 1.5% from the impact of negative currency translation. The increase in organic sales in the third quarter of 2019 was primarily driven by strength in data centers, commercial construction and engineering services. Net sales increased 5% in the first nine months of 2019 compared to the first nine months of 2018 due to an increase of 5% in organic sales and an increase of 1% from the acquisition of a business, partially offset by a decrease of 1% from the impact of negative currency translation. The increase in organic sales in the first nine months of 2019 was primarily driven by strength in commercial construction, industrial projects and data centers.

The operating margin increased from 15.4% in the third quarter of 2018 to 18.1% in the third quarter of 2019 and from 14.2% in the first nine months of 2018 to 16.3% in the first nine months of 2019 primarily due to higher sales volumes and other operating improvements.

The operating margin before acquisition integration and divestiture charges increased from 15.4% in the third quarter of 2018 to 18.3% in the third quarter of 2019 and from 14.2% in the first nine months of 2018 to 16.3% in the first nine months of 2019 primarily due to an increase in the operating margin.

Hydraulics

	Three months ended September 30						Increase (decrease)		Nine months ended September 30						Increase (decrease)
	2019			2018					2019			2018
Net sales	$	603		$	670		(10	)%	$	1,987		$	2,103		(6	)%
Operating profit	$	72		$	94		(23	)%	$	232		$	285		(19	)%
Operating margin	11.9		%	14.0		%			11.7		%	13.6		%

Net sales decreased 10% in the third quarter of 2019 compared to the third quarter of 2018 due to a decrease of 8% in organic sales and a decrease of 2% from the impact of negative currency translation. Net sales decreased 6% in the first nine months of 2019 compared to the first nine months of 2018 due to a decrease of 3% in organic sales and 3% from the impact of negative currency translation. The decrease in organic sales in the third quarter and first nine months of 2019 was primarily due to weakness in global mobile equipment markets and destocking at both OEMs and distributors.

The operating margin decreased from 14.0% in the third quarter of 2018 to 11.9% in the third quarter of 2019 and from 13.6% in the first nine months of 2018 to 11.7% in the first nine months of 2019 primarily due to lower sales volumes, unfavorable product mix and operating inefficiencies.

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Aerospace

	Three months ended September 30						Increase (decrease)		Nine months ended September 30						Increase (decrease)
	2019			2018					2019			2018
Net sales	$	513		$	478		7	%	$	1,532		$	1,399		10	%
Operating profit	$	129		$	105		23	%	$	372		$	284		31	%
Operating margin	25.1		%	22.0		%			24.3		%	20.3		%

Net sales increased 7% in the third quarter of 2019 compared to the third quarter of 2018 due to an increase of 8% in organic sales, partially offset by a decrease of 1% from the impact of negative currency translation. Net sales increased 10% in the first nine months of 2019 compared to the first nine months of 2018 due to an increase of 11% in organic sales, partially offset by a decrease of 1% from the impact of negative currency translation. The increase in organic sales in the third quarter and first nine months of 2019 was primarily due to strength in the commercial OEM market and the commercial aftermarket.

The operating margin increased from 22.0% in the third quarter of 2018 to 25.1% in third quarter of 2019 and from 20.3% in the first nine months of 2018 to 24.3% in the first nine months of 2019 primarily due to higher sales volumes and favorable product mix.

Vehicle

	Three months ended September 30						Increase (decrease)		Nine months ended September 30						Increase (decrease)
	2019			2018					2019			2018
Net sales	$	761		$	876		(13	)%	$	2,374		$	2,668		(11	)%
Operating profit	$	139		$	166		(16	)%	$	397		$	464		(14	)%
Operating margin	18.3		%	18.9		%			16.7		%	17.4		%

Net sales decreased 13% in the third quarter of 2019 compared to the third quarter of 2018 due to a decrease of 12% in organic sales and a decrease of 1% from the impact of negative currency translation. Net sales decreased 11% in the first nine months of 2019 compared to the first nine months of 2018 due to a decrease of 9% in organic sales and a decrease of 2% from the impact of negative currency translation. The decrease in organic sales in the third quarter and first nine months of 2019 was driven by weakness in global light vehicle markets and revenues transferring over to the Eaton Cummins Automated Transmission Technologies joint venture.

The operating margin decreased from 18.9% in the third quarter of 2018 to 18.3% in the third quarter of 2019 and from 17.4% in the first nine months of 2018 to 16.7% in the first nine months of 2019 primarily due to lower sales volumes.

eMobility

	Three months ended September 30						Increase (decrease)		Nine months ended September 30						Increase (decrease)
	2019			2018					2019			2018
Net sales	$	79		$	80		(1	)%	$	246		$	240		3	%
Operating profit	$	4		$	10		(60	)%	$	16		$	35		(54	)%
Operating margin	5.1		%	12.5		%			6.5		%	14.6		%

Net sales decreased 1% in the third quarter of 2019 compared to the third quarter of 2018 due to decrease of 1% from the impact of negative currency translation. Net sales increased 3% in the first nine months of 2019 compared to the first nine months of 2018 due to an increase of 4% in organic sales, partially offset by a decrease of 1% from the impact of negative currency translation. The increase in organic sales in the first nine months of 2019 was due to growth in North America.

The operating margin decreased from 12.5% in the third quarter of 2018 to 5.1% in the third quarter of 2019 and from 14.6% in the first nine months of 2018 to 6.5% in the first nine months of 2019 primarily due to increased research and development costs.

39

Corporate Expense

	Three months ended September 30				Increase (decrease)		Nine months ended September 30				Increase (decrease)
	2019		2018				2019		2018
Amortization of intangible assets	$	93	$	95	(2	)%	$	280	$	289	(3	)%
Interest expense - net	54		67		(19	)%	183		205		(11	)%
Pension and other postretirement    benefits expense	5		3		67	%	7		4		75	%
Arbitration decision expense	—		275		NM		—		275		NM
Other corporate expense - net	116		73		59	%	289		209		38	%
Total corporate expense	$	268	$	513	(48	)%	$	759	$	982	(23	)%

Total corporate expense was $268 in the third quarter of 2019 compared to corporate expense of $513 in the third quarter of 2018. Total corporate expense was $759 in the first nine months of 2019 compared to corporate expense of $982 in the first nine months of 2018. The decrease in Total corporate expense for the third quarter and first nine months of 2019 was primarily due to the 2018 arbitration decision discussed in Note 9, partially offset by higher acquisition integration and divestiture charges discussed in Note 2.

LIQUIDITY, CAPITAL RESOURCES AND CHANGES IN FINANCIAL CONDITION

Financial Condition and Liquidity

Eaton’s objective is to finance its business through operating cash flow and an appropriate mix of equity and long-term and short-term debt. By diversifying its debt maturity structure, Eaton reduces liquidity risk. The Company maintains access to the commercial paper markets through a $2,000 commercial paper program, which is supported by credit facilities in the aggregate principal amount of $2,000. There were no borrowings outstanding under these revolving credit facilities at September 30, 2019. Over the course of a year, cash, short-term investments and short-term debt may fluctuate in order to manage global liquidity. Eaton believes it has the operating flexibility, cash flow, cash and short-term investment balances, and access to capital markets in excess of the liquidity necessary to meet future operating needs of the business as well as scheduled payments of long-term debt.

On May 14, 2019, a subsidiary of Eaton issued euro denominated notes (2019 Euro Notes) with a face value of €1,100 ($1,232 based on the May 14, 2019 spot rate), in accordance with Regulation S promulgated under the Securities Act of 1933, as amended. The 2019 Euro Notes are comprised of two tranches of €600 and €500, which mature in 2021 and 2025, respectively, with interest payable annually at a respective rate of 0.02% and 0.70%. The issuer received proceeds totaling €1,097 ($1,229 based on the May 14, 2019 spot rate) from the issuance, net of financing costs and discounts.

Eaton was in compliance with each of its debt covenants for all periods presented.

Sources and Uses of Cash

Operating Cash Flow

Net cash provided by operating activities was $2,514 in the first nine months of 2019, an increase of $676 in the source of cash compared to $1,838 in the first nine months of 2018. The increase in net cash provided by operating activities in the first nine months of 2019 was driven by higher net income compared to 2018. Other-net includes the impact of foreign currency gains and losses related to the remeasurement of intercompany balance sheet exposures, which have no impact on Operating cash flow.

Investing Cash Flow

Net cash used in investing activities was $832 in the first nine months of 2019, an increase in the use of cash of $576 compared to $256 in the first nine months of 2018. The increase in the use of cash was primarily driven by net purchases of short-term investments of $132 in 2019 compared to net sales of $329 in 2018, and cash paid for business acquisitions discussed in Note 2, partially offset by $26 of net proceeds in 2019 compared to net payments of $122 in 2018 from the settlement of currency exchange contracts not designated as hedges discussed in Note 13.

40

Financing Cash Flow

Net cash used in financing activities was $1,423 in the first nine months of 2019, a decrease of $445 in the use of cash compared to $1,868 in the first nine months of 2018. The decrease in the use of cash was primarily due to higher proceeds from borrowings of $1,232 in 2019 compared to $80 in 2018, partially offset by higher share repurchases of $978 in 2019 compared to $600 in 2018, and higher payments on borrowings of $757 in 2019 compared to $486 in 2018.

FORWARD-LOOKING STATEMENTS

This Form 10-Q Report contains forward-looking statements concerning the anticipated completion of the divestiture of our Lighting business, the anticipated completion of the acquisition of Souriau-Sunbank Connection Technologies and legal contingencies, among other matters. These statements may discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to Eaton, based on current beliefs of management as well as assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “possible,” “potential,” “predict,” “project” or other similar words, phrases or expressions. These statements should be used with caution and are subject to various risks and uncertainties, many of which are outside Eaton’s control. The following factors could cause actual results to differ materially from those in the forward-looking statements: unanticipated changes in the markets for the Company’s business segments; unanticipated downturns in business relationships with customers or their purchases from us; the potential effects on our businesses from natural disasters; the availability of credit to customers and suppliers; competitive pressures on sales and pricing; unanticipated changes in the cost of material and other production costs, or unexpected costs that cannot be recouped in product pricing; the introduction of competing technologies; unexpected technical or marketing difficulties; unexpected claims, charges, litigation or dispute resolutions; strikes or other labor unrest; the impact of acquisitions and divestitures; unanticipated difficulties integrating acquisitions; new laws and governmental regulations; interest rate changes; tax rate changes or exposure to additional income tax liability; stock market and currency fluctuations; war, civil or political unrest or terrorism; and unanticipated deterioration of economic and financial conditions in the United States and around the world. Eaton does not assume any obligation to update these forward-looking statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

There have been no material changes in exposures to market risk since December 31, 2018.

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures - Pursuant to SEC Rule 13a-15, an evaluation was performed under the supervision and with the participation of Eaton’s management, including Craig Arnold - Principal Executive Officer; and Richard H. Fearon - Principal Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based on that evaluation, management concluded that Eaton’s disclosure controls and procedures were effective as of September 30, 2019.

Disclosure controls and procedures are designed to ensure that information required to be disclosed in Eaton’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in Eaton’s reports filed under the Exchange Act is accumulated and communicated to management, including Eaton’s Principal Executive Officer and Principal Financial Officer, to allow timely decisions regarding required disclosure.

During the third quarter of 2019, there was no change in Eaton’s internal control over financial reporting that materially affected, or is reasonably likely to materially affect, internal control over financial reporting.

41

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

Information regarding the Company's current legal proceedings is presented in Note 9 of the Notes to the Condensed Consolidated Financial Statements.

ITEM 1A. RISK FACTORS.

“Item 1A. Risk Factors” in Eaton's 2018 Form 10-K includes a discussion of the Company's risk factors. There have been no material changes from the risk factors described in the 2018 Form 10-K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

(c) Issuer's Purchases of Equity Securities

During the third quarter of 2019, 6.8 million ordinary shares were repurchased in the open market at a total cost of $539 million. These shares were repurchased under the program approved by the Board on February 27, 2019 (the 2019 Program). A summary of the shares repurchased in the third quarter of 2019 follows:

Month	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions)
July	780,496	$	82.87	780,496	$	4,292
August	5,667,541	$	78.32	5,667,541	$	4,227
September	384,208	$	78.08	384,208	$	3,783
Total	6,832,245	$	78.82	6,832,245	3,753

42

ITEM 6. EXHIBITS.

Eaton Corporation plc

Third Quarter 2019 Report on Form 10-Q

3 (i)	Certificate of Incorporation — Incorporated by reference to the Form S-8 filed November 30, 2012
3 (ii)	Amended and Restated Memorandum and Articles of Incorporation — Incorporated by reference to the Form 8-K filed on May 1, 2017
4.1	Indenture dated as of November 20, 2012, among Turlock Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.1 of Eaton Corporation plc's Form 8-K Current Report filed on November 26, 2012 (Commission File No. 333-182303))
4.2	Supplemental Indenture No. 1, dated as of November 30, 2012, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.2 of the registrant's Form S-4 filed on September 6, 2013)
4.3	Supplemental Indenture No. 2, dated as of January 8, 2013, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference Exhibit 4.3 of the registrant's Form S-4 filed on September 6, 2013)
4.4	Supplemental Indenture No. 3, dated as of December 20, 2013, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference Exhibit 4.4 of the registrant's Form 10-K filed on February 28, 2018)
4.5	Supplemental Indenture No. 4, dated as of December 20, 2017 and effective as of January 1, 2018, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference Exhibit 4.5 of the registrant's Form 10-K filed on February 28, 2018)
4.6	Supplemental Indenture No. 5, dated as of February 16, 2018, among Eaton Corporation, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference Exhibit 4.6 of the registrant's Form 10-K filed on February 28, 2018)
4.7	Pursuant to Regulation S-K Item 601(b)(4), Eaton agrees to furnish to the SEC, upon request, a copy of the instruments defining the rights of holders of its long-term debt other than those set forth in Exhibits (4.1 - 4.6) hereto
31.1	Certification of Principal Executive Officer (Pursuant to Rule 13a-14(a)) — Filed in conjunction with this Form 10-Q Report *
31.2	Certification of Principal Financial Officer (Pursuant to Rule 13a-14(a)) — Filed in conjunction with this Form 10-Q Report *
32.1	Certification of Principal Executive Officer (Pursuant to Rule 13a-14(b) as adopted pursuant to Section 906 of the Sarbanes-Oxley Act) — Filed in conjunction with this Form 10-Q Report *
32.2	Certification of Principal Financial Officer (Pursuant to Rule 13a-14(b) as adopted pursuant to Section 906 of the Sarbanes-Oxley Act) — Filed in conjunction with this Form 10-Q Report *
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. *
101.SCH	XBRL Taxonomy Extension Schema Document *
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document *
101.DEF	XBRL Taxonomy Extension Label Definition Document *
101.LAB	XBRL Taxonomy Extension Label Linkbase Document *
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document *
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

_______________________________

* Submitted electronically herewith.

43

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

			EATON CORPORATION plc
			Registrant
Date:	October 29, 2019	By:	/s/ Richard H. Fearon
			Richard H. Fearon
			Principal Financial Officer
			(On behalf of the registrant and as Principal Financial Officer)

44

EX-31.1

Eaton Corporation plc

Third Quarter 2019 Report on Form 10-Q

Item 6

Exhibit 31.1

Certification

I, Craig Arnold, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Eaton Corporation plc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	October 29, 2019	/s/ Craig Arnold
		Craig Arnold
		Principal Executive Officer

EX-31.2

Eaton Corporation plc

Third Quarter 2019 Report on Form 10-Q

Item 6

Exhibit 31.2

Certification

I, Richard H. Fearon, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Eaton Corporation plc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	October 29, 2019	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

EX-32.1

Eaton Corporation plc

Third Quarter 2019 Report on Form 10-Q

Item 6

Exhibit 32.1

Certification

This written statement is submitted in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. It accompanies Eaton Corporation plc’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 (“10-Q Report”).

I hereby certify that, based on my knowledge, the 10-Q Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C 78m), and information contained in the 10-Q Report fairly presents, in all material respects, the financial condition and results of operations of Eaton Corporation plc and its consolidated subsidiaries.

Date:	October 29, 2019	/s/ Craig Arnold
		Craig Arnold
		Principal Executive Officer

EX-32.2

Eaton Corporation plc

Third Quarter 2019 Report on Form 10-Q

Item 6

Exhibit 32.2

Certification

This written statement is submitted in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. It accompanies Eaton Corporation plc’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 (“10-Q Report”).

I hereby certify that, based on my knowledge, the 10-Q Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C 78m), and information contained in the 10-Q Report fairly presents, in all material respects, the financial condition and results of operations of Eaton Corporation plc and its consolidated subsidiaries.

Date:	October 29, 2019	/s/ Richard H. Fearon
		Richard H. Fearon
		Principal Financial Officer

XML

FAIR VALUE MEASUREMENTS - Summary of Financial Instruments at Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	$ 549	$ 283	$ 327	$ 561
Short-term investments	281	157
Net derivative contracts	(52)	14
Level 1
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	549	283
Short-term investments	281	157
Net derivative contracts	0	0
Level 2
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	0	0
Short-term investments	0	0
Net derivative contracts	(52)	14
Level 3
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash	0	0
Short-term investments	0	0
Net derivative contracts	$ 0	$ 0

XML

EQUITY - Changes in Shareholders's Equity (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Feb. 27, 2019	Feb. 24, 2016
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 16,361	$ 16,267	$ 16,142	$ 16,725	$ 17,301	$ 17,290	$ 16,142	$ 17,290
Net income	602	636	522	416	611	487	1,760	1,514
Other comprehensive income (loss), net of tax	(259)	(30)	67	(98)	(624)	296	(222)	(426)
Cash dividends paid and accrued	(298)	(301)	(310)	(286)	(289)	(290)
Issuance of shares under equity-based compensation plans	37	27	(4)	32	29	17
Changes in noncontrolling interest of consolidated subsidiaries - net					(3)	2
Acquisition of a business		51
Acquisition of noncontrolling interest obtained through tender offer	(4)	(29)
Repurchase of shares	(539)	(260)	(150)		(300)	(300)
Ending balance	15,900	16,361	16,267	16,789	16,725	17,301	15,900	16,789
Ordinary shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 4	$ 4	$ 4	$ 4	$ 4	$ 4	$ 4	$ 4
Beginning balance, shares	420,000,000.0	423,100,000	423,600,000	433,300,000	437,300,000	439,900,000	423,600,000	439,900,000
Issuance of shares under equity-based compensation plans, shares	200,000	100,000	1,400,000	100,000		1,100,000
Repurchase of shares, shares	(6,800,000)	(3,200,000)	(1,900,000)		(4,000,000.0)	(3,700,000)
Ending balance, shares	413,400,000	420,000,000.0	423,100,000	433,400,000	433,300,000	437,300,000	413,400,000	433,400,000
Ending balance	$ 4	$ 4	$ 4	$ 4	$ 4	$ 4	$ 4	$ 4
Capital in excess of par value
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	12,112	12,085	12,090	12,033	12,005	11,987	12,090	11,987
Issuance of shares under equity-based compensation plans	39	27	(5)	33	28	18
Ending balance	12,151	12,112	12,085	12,066	12,033	12,005	12,151	12,066
Retained earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	8,300	8,225	8,161	8,387	8,365	8,669	8,161	8,669
Net income	601	636	522	416	610	488
Cash dividends paid and accrued	(298)	(300)	(309)	(286)	(288)	(290)
Issuance of shares under equity-based compensation plans	(2)	(1)	1			(1)
Repurchase of shares	(539)	(260)	(150)		(300)	(300)
Ending balance	8,062	8,300	8,225	8,517	8,387	8,365	8,062	8,517
Accumulated other comprehensive loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(4,108)	(4,078)	(4,145)	(3,732)	(3,108)	(3,404)	(4,145)	(3,404)
Other comprehensive income (loss), net of tax	(259)	(30)	67	(98)	(624)	296
Ending balance	(4,367)	(4,108)	(4,078)	(3,830)	(3,732)	(3,108)	(4,367)	(3,830)
Shares held in trust
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(2)	(3)	(3)	(2)	(3)	(3)	(3)	(3)
Issuance of shares under equity-based compensation plans	0	1		(1)	1
Ending balance	(2)	(2)	(3)	(3)	(2)	(3)	(2)	(3)
Eaton shareholders’ equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	16,306	16,233	16,107	16,690	17,263	17,253	16,107	17,253
Net income	601	636	522	416	610	488
Other comprehensive income (loss), net of tax	(259)	(30)	67	(98)	(624)	296
Cash dividends paid and accrued	(298)	(300)	(309)	(286)	(288)	(290)
Issuance of shares under equity-based compensation plans	37	27	(4)	32	29	17
Repurchase of shares	(539)	(260)	(150)		(300)	(300)
Ending balance	15,848	16,306	16,233	16,754	16,690	17,263	15,848	16,754
Noncontrolling interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	55	34	35	35	38	37	35	37
Net income	1				1	(1)
Cash dividends paid and accrued	0	(1)	(1)		(1)
Changes in noncontrolling interest of consolidated subsidiaries - net					(3)	2
Acquisition of a business		51
Acquisition of noncontrolling interest obtained through tender offer	(4)	(29)
Ending balance	$ 52	$ 55	$ 34	$ 35	$ 35	38	$ 52	$ 35
Cumulative-effect adjustment upon adoption of ASU 2014-09
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment upon adoption						(2)
Cumulative-effect adjustment upon adoption of ASU 2014-09 | Retained earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment upon adoption						(2)
Cumulative-effect adjustment upon adoption of ASU 2014-09 | Eaton shareholders’ equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment upon adoption						(2)
Cumulative-effect adjustment upon adoption of ASU 2016-16
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment upon adoption						(199)
Cumulative-effect adjustment upon adoption of ASU 2016-16 | Retained earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment upon adoption						(199)
Cumulative-effect adjustment upon adoption of ASU 2016-16 | Eaton shareholders’ equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment upon adoption						$ (199)
2016 Program
Accumulated Other Comprehensive Income (Loss) [Line Items]
Share repurchase program, authorized (in shares)										2,500,000,000
Ordinary shares purchased (in shares)								7,700,000
Shares repurchased								$ 600
2019 Program
Accumulated Other Comprehensive Income (Loss) [Line Items]
Share repurchase program, authorized (in shares)									5,000,000,000
Ordinary shares purchased (in shares)	6,800,000						11,900,000
Shares repurchased	$ 539						$ 949

XML

FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to satisfy a liability in an orderly transaction between market participants. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a fair value hierarchy is established, which categorizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

A summary of financial instruments recognized at fair value, and the fair value measurements used, follows:

	Total			Level 1		Level 2			Level 3
September 30, 2019
Cash	$	549		$	549	$	—		$	—
Short-term investments	281			281		—			—
Net derivative contracts	(52		)	—		(52		)	—
December 31, 2018
Cash	$	283		$	283	$	—		$	—
Short-term investments	157			157		—			—
Net derivative contracts	14			—		14			—

Eaton values its financial instruments using an industry standard market approach, in which prices and other relevant information is generated by market transactions involving identical or comparable assets or liabilities. No financial instruments were measured using unobservable inputs.

Other Fair Value Measurements

Long-term debt and the current portion of long-term debt had a carrying value of $8,019 and fair value of $8,600 at September 30, 2019 compared to $7,107 and $7,061, respectively, at December 31, 2018. The fair value of Eaton's debt instruments were estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities, and are considered a Level 2 fair value measurement.

XML

RETIREMENT BENEFITS PLANS

9 Months Ended

Sep. 30, 2019

Retirement Benefits [Abstract]

RETIREMENT BENEFITS PLANS

RETIREMENT BENEFITS PLANS

The components of retirement benefits expense follow:

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Three months ended September 30
	2019			2018			2019			2018			2019			2018
Service cost	$	22		$	25		$	14		$	16		$	—		$	1
Interest cost	35			30			13			13			3			3
Expected return on plan assets	(59		)	(63		)	(25		)	(27		)	—			—
Amortization	15			24			10			9			(3		)	(4		)
	13			16			12			11			—			—
Settlements, curtailments and special termination benefits	13			13			2			1			—			—
Total expense	$	26		$	29		$	14		$	12		$	—		$	—
	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Nine months ended September 30
	2019			2018			2019			2018			2019			2018
Service cost	$	68		$	75		$	43		$	48		$	1		$	2
Interest cost	103			91			42			40			10			10
Expected return on plan assets	(176		)	(190		)	(79		)	(80		)	(1		)	(2		)
Amortization	46			71			29			29			(10		)	(10		)
	41			47			35			37			—			—
Settlements, curtailments and special termination benefits	36			38			3			1			—			—
Total expense	$	77		$	85		$	38		$	38		$	—		$	—

The components of retirement benefits expense other than service costs are included in Other (income) expense - net.

XML

REVENUE RECOGNITION

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

REVENUE RECOGNITION

Sales are recognized when obligations under the terms of the contract are satisfied and control of promised goods or services have transferred to our customers. Sales are measured at the amount of consideration the Company expects to be paid in exchange for these products or services.

The Company’s six operating segments and the following tables disaggregate sales by lines of businesses, geographic destination, market channel or end market.

	Three months ended September 30, 2019
Net sales	United States		Rest of World		Total
Electrical Products	$	1,073	$	713	$	1,786
Electrical Systems and Services	1,034		538		1,572
Hydraulics	267		336		603
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	298	$	215	513
	Commercial		Passenger and Light Duty
Vehicle	$	371	$	390	761
eMobility					79
Total					$	5,314

	Three months ended September 30, 2018
Net sales	United States		Rest of World		Total
Electrical Products	$	1,055	$	734	$	1,789
Electrical Systems and Services	1,000		519		1,519
Hydraulics	301		369		670
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	269	$	209	478
	Commercial		Passenger and Light Duty
Vehicle	$	451	$	425	876
eMobility					80
Total					$	5,412

	Nine months ended September 30, 2019
Net sales	United States		Rest of World		Total
Electrical Products	$	3,235	$	2,160	$	5,395
Electrical Systems and Services	3,059		1,559		4,618
Hydraulics	863		1,124		1,987
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	884	$	648	1,532
	Commercial		Passenger and Light Duty
Vehicle	$	1,227	$	1,147	2,374
eMobility					246
Total					$	16,152

	Nine months ended September 30, 2018
Net sales	United States		Rest of World		Total
Electrical Products	$	3,048	$	2,279	$	5,327
Electrical Systems and Services	2,877		1,536		4,413
Hydraulics	907		1,196		2,103
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	799	$	600	1,399
	Commercial		Passenger and Light Duty
Vehicle	$	1,333	$	1,335	2,668
eMobility					240
Total					$	16,150

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (revenue recognized exceeds amount billed to the customer), and deferred revenue (advance payments and billings in excess of revenue recognized). Accounts receivables from customers were $3,384 and $3,402 at September 30, 2019 and December 31, 2018, respectively. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. These assets and liabilities are reported on the Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. Unbilled receivables were $104 and $94 at September 30, 2019 and December 31, 2018, respectively, and are recorded in Prepaid expenses and other current assets. The increase in unbilled receivables was primarily due to revenue recognized and not yet billed, partially offset by billings to customers during the quarter.

Changes in the deferred revenue liabilities are as follows:

	Deferred Revenue
Balance at December 31, 2018	$	248
Customer deposits and billings	680
Revenue recognized in the period	(683		)
Translation	1
Balance at September 30, 2019	$	246

	Deferred Revenue
Balance at January 1, 2018	$	227
Customer deposits and billings	696
Revenue recognized in the period	(676		)
Translation	(6		)
Balance at September 30, 2018	$	241

A significant portion of open orders placed with Eaton are by original equipment manufacturers or distributors. These open orders are not considered firm as they have been historically subject to releases by customers. In measuring backlog of unsatisfied or partially satisfied obligations, only the amount of orders to which customers are firmly committed are included. Using this criterion, total backlog at September 30, 2019 and December 31, 2018 was approximately $5.4 billion and $5.3 billion, respectively. At September 30, 2019 and December 31, 2018, Eaton expects to recognize approximately 86% and 87%, respectively, of this backlog in the next twelve months and the rest thereafter.

XML

BUSINESS SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Business Segment Information

	Three months ended September 30						Nine months ended September 30
	2019			2018			2019			2018
Net sales
Electrical Products	$	1,786		$	1,789		$	5,395		$	5,327
Electrical Systems and Services	1,572			1,519			4,618			4,413
Hydraulics	603			670			1,987			2,103
Aerospace	513			478			1,532			1,399
Vehicle	761			876			2,374			2,668
eMobility	79			80			246			240
Total net sales	$	5,314		$	5,412		$	16,152		$	16,150
Segment operating profit
Electrical Products	$	358		$	343		$	1,050		$	984
Electrical Systems and Services	284			234			751			628
Hydraulics	72			94			232			285
Aerospace	129			105			372			284
Vehicle	139			166			397			464
eMobility	4			10			16			35
Total segment operating profit	986			952			2,818			2,680
Corporate
Amortization of intangible assets	(93		)	(95		)	(280		)	(289		)
Interest expense - net	(54		)	(67		)	(183		)	(205		)
Pension and other postretirement benefits expense	(5		)	(3		)	(7		)	(4		)
Arbitration decision expense	—			(275		)	—			(275		)
Other corporate expense - net	(116		)	(73		)	(289		)	(209		)
Income before income taxes	718			439			2,059			1,698
Income tax expense	116			23			299			184
Net income	602			416			1,760			1,514
Less net income for noncontrolling interests	(1		)	—			(1		)	—
Net income attributable to Eaton ordinary shareholders	$	601		$	416		$	1,759		$	1,514

XML

ACQUISITION, INTEGRATION AND DIVESTITURE CHARGES (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Acquisition, integration and divestiture charges [Line Items]
Acquisition integration and divestiture charges	$ 39	$ 0	$ 65	$ 0
Income taxes	4	0	5	0
Total after income taxes	$ 35	$ 0	$ 60	$ 0
Per ordinary share - diluted (dollars per share)	$ 0.08	$ 0	$ 0.14	$ 0
Electrical Products
Acquisition, integration and divestiture charges [Line Items]
Acquisition integration and divestiture charges	$ 4	$ 0	$ 6	$ 0
Electrical Systems and Services
Acquisition, integration and divestiture charges [Line Items]
Acquisition integration and divestiture charges	3	0	4	0
Corporate
Acquisition, integration and divestiture charges [Line Items]
Acquisition integration and divestiture charges	$ 32	$ 0	$ 55	$ 0

XML

GOODWILL (Tables)

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Change in the carrying amount of goodwill by segment follows:

	December 31, 2018		Additions		Translation			September 30, 2019
Electrical Products	$	6,562	$	—	$	(97	)	$	6,465
Electrical Systems and Services	4,241		164		(29		)	4,376
Hydraulics	1,212		—		(23		)	1,189
Aerospace	941		—		(3		)	938
Vehicle	292		—		(3		)	289
eMobility	80		—		—			80
Total	$	13,328	$	164	$	(155	)	$	13,337

XML

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

9 Months Ended

Sep. 30, 2019

Condensed Financial Information Disclosure [Abstract]

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The Registered Senior Notes issued by Eaton Corporation are registered under the Securities Act of 1933. Eaton and certain of Eaton's 100% owned direct and indirect subsidiaries (the Guarantors) fully and unconditionally guaranteed (subject, in the case of the Guarantors, other than Eaton, to customary release provisions as described below), on a joint and several basis, the Registered Senior Notes. The following condensed consolidating financial statements are included so that separate financial statements of Eaton, Eaton Corporation and each of the Guarantors are not required to be filed with the Securities and Exchange Commission. The consolidating adjustments primarily relate to eliminations of investments in subsidiaries and intercompany balances and transactions. The condensed consolidating financial statements present investments in subsidiaries using the equity method of accounting. See Note 7 of Eaton's 2018 Form 10-K for additional information related to the Registered Senior Notes.

The guarantee of a Guarantor that is not a parent of the issuer will be automatically and unconditionally released and discharged in the event of any sale of the Guarantor or of all or substantially all of its assets, or in connection with the release or termination of the Guarantor as a guarantor under all other U.S. debt securities or U.S. syndicated credit facilities, subject to limitations set forth in the indenture. The guarantee of a Guarantor that is a direct or indirect parent of the issuer will only be automatically and unconditionally released and discharged in connection with the release or termination of such Guarantor as a guarantor under all other debt securities or syndicated credit facilities (in both cases, U.S. or otherwise), subject to limitations set forth in the indenture.

During 2019 and 2018, the Company undertook certain steps to restructure ownership of various subsidiaries. The transactions were entirely among wholly-owned subsidiaries under the common control of Eaton. These restructurings have been reflected as of the beginning of the earliest period presented below.

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,744		$	1,826		$	2,996		$	(1,252	)	$	5,314
Cost of products sold	—			1,339			1,301			2,127			(1,255		)	3,512
Selling and administrative expense	2			368			199			316			—			885
Research and development expense	—			37			35			75			—			147
Interest expense (income) - net	—			59			5			(10		)	—			54
Other expense (income) - net	1			3			2			(8		)	—			(2		)
Equity in loss (earnings) of    subsidiaries, net of tax	(611		)	(217		)	(797		)	(677		)	2,302			—
Intercompany expense (income) - net	7			(50		)	513			(470		)	—			—
Income (loss) before income taxes	601			205			568			1,643			(2,299		)	718
Income tax expense (benefit)	—			3			(27		)	139			1			116
Net income (loss)	601			202			595			1,504			(2,300		)	602
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	601		$	202		$	595		$	1,503		$	(2,300	)	$	601
Other comprehensive income (loss)	$	(259	)	$	(26	)	$	(268	)	$	(705	)	$	999		$	(259	)
Total comprehensive income   (loss) attributable to Eaton   ordinary shareholders	$	342		$	176		$	327		$	798		$	(1,301	)	$	342

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,808		$	1,814		$	3,134		$	(1,344	)	$	5,412
Cost of products sold	—			1,419			1,320			2,202			(1,344		)	3,597
Selling and administrative expense	3			356			197			333			—			889
Research and development expense	—			33			37			68			—			138
Interest expense (income) - net	—			68			3			(4		)	—			67
Arbitration decision expense	—			—			275			—			—			275
Other expense (income) - net	(3		)	11			4			(5		)	—			7
Equity in loss (earnings) of    subsidiaries, net of tax	(430		)	(191		)	(892		)	(433		)	1,946			—
Intercompany expense (income) - net	14			33			579			(626		)	—			—
Income (loss) before income taxes	416			79			291			1,599			(1,946		)	439
Income tax expense (benefit)	—			(10		)	(91		)	124			—			23
Net income (loss)	416			89			382			1,475			(1,946		)	416
Less net loss (income) for    noncontrolling interests	—			—			—			—			—			—
Net income (loss) attributable to    Eaton ordinary shareholders	$	416		$	89		$	382		$	1,475		$	(1,946	)	$	416
Other comprehensive income (loss)	$	(98	)	$	(22	)	$	(94	)	$	(240	)	$	356		$	(98	)
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	318		$	67		$	288		$	1,235		$	(1,590	)	$	318

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	5,326		$	5,548		$	9,168		$	(3,890	)	$	16,152
Cost of products sold	—			4,150			3,967			6,552			(3,887		)	10,782
Selling and administrative expense	8			1,089			609			1,003			—			2,709
Research and development expense	—			113			110			231			—			454
Interest expense (income) - net	—			194			14			(23		)	(2		)	183
Other expense (income) - net	(12		)	1			(20		)	(4		)	—			(35		)
Equity in loss (earnings) of    subsidiaries, net of tax	(1,785		)	(699		)	(2,359		)	(2,072		)	6,915			—
Intercompany expense (income) - net	30			(48		)	1,386			(1,368		)	—			—
Income (loss) before income taxes	1,759			526			1,841			4,849			(6,916		)	2,059
Income tax expense (benefit)	—			18			(62		)	343			—			299
Net income (loss)	1,759			508			1,903			4,506			(6,916		)	1,760
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	1,759		$	508		$	1,903		$	4,505		$	(6,916	)	$	1,759
Other comprehensive income (loss)	$	(222	)	$	(22	)	$	(215	)	$	(612	)	$	849		$	(222	)
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	1,537		$	486		$	1,688		$	3,893		$	(6,067	)	$	1,537

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	5,306		$	5,304		$	9,567		$	(4,027	)	$	16,150
Cost of products sold	—			4,198			3,845			6,824			(4,026		)	10,841
Selling and administrative expense	8			1,093			575			1,003			—			2,679
Research and development expense	—			109			113			217			—			439
Interest expense (income) - net	—			203			11			(11		)	2			205
Arbitration decision expense	—			—			275			—			—			275
Other expense (income) - net	(22		)	25			31			(21		)	—			13
Equity in loss (earnings) of    subsidiaries, net of tax	(1,531		)	(628		)	(2,588		)	(1,716		)	6,463			—
Intercompany expense (income) - net	31			35			1,623			(1,689		)	—			—
Income (loss) before income taxes	1,514			271			1,419			4,960			(6,466		)	1,698
Income tax expense (benefit)	—			(23		)	(119		)	327			(1		)	184
Net income (loss)	1,514			294			1,538			4,633			(6,465		)	1,514
Less net loss (income) for    noncontrolling interests	—			—			—			—			—			—
Net income (loss) attributable to    Eaton ordinary shareholders	$	1,514		$	294		$	1,538		$	4,633		$	(6,465	)	$	1,514
Other comprehensive income (loss)	$	(426	)	$	(37	)	$	(394	)	$	(1,012	)	$	1,443		$	(426	)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	1,088		$	257		$	1,144		$	3,621		$	(5,022	)	$	1,088

CONDENSED CONSOLIDATING BALANCE SHEETS SEPTEMBER 30, 2019
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	222	$	—	$	327	$	—		$	549
Short-term investments	—		—		—		281		—			281
Accounts receivable - net	—		475		1,289		2,023		—			3,787
Intercompany accounts    receivable	9		855		1,957		2,681		(5,502		)	—
Inventory	—		577		857		1,546		(79		)	2,901
Prepaid expenses and    other current assets	—		100		32		347		15			494
Total current assets	9		2,229		4,135		7,205		(5,566		)	8,012
Property, plant and    equipment - net	—		851		669		1,963		—			3,483
Other noncurrent assets
Goodwill	—		1,330		6,705		5,302		—			13,337
Other intangible assets	—		123		2,941		1,593		—			4,657
Operating lease assets	—		159		62		223		—			444
Deferred income taxes	—		351		—		278		(335		)	294
Investment in subsidiaries	16,939		26,627		73,052		27,306		(143,924		)	—
Intercompany loans receivable	9		5,736		7,334		60,233		(73,312		)	—
Other assets	—		778		159		731		—			1,668
Total assets	$	16,957	$	38,184	$	95,057	$	104,834	$	(223,137	)	$	31,895
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	2	$	—		$	2
Current portion of    long-term debt	—		4		—		2		—			6
Accounts payable	—		494		508		1,288		—			2,290
Intercompany accounts payable	9		1,355		2,981		1,157		(5,502		)	—
Accrued compensation	—		99		59		263		—			421
Other current liabilities	1		588		269		1,086		(2		)	1,942
Total current liabilities	10		2,540		3,817		3,798		(5,504		)	4,661
Noncurrent liabilities
Long-term debt	—		5,900		2,107		6		—			8,013
Pension liabilities	—		378		127		734		—			1,239
Other postretirement    benefits liabilities	—		167		82		73		—			322
Operating lease liabilities	—		116		47		170		—			333
Deferred income taxes	—		—		458		186		(335		)	309
Intercompany loans payable	1,099		5,272		65,822		1,119		(73,312		)	—
Other noncurrent liabilities	—		454		304		360		—			1,118
Total noncurrent liabilities	1,099		12,287		68,947		2,648		(73,647		)	11,334
Shareholders’ equity
Eaton shareholders' equity	15,848		23,357		22,293		98,336		(143,986		)	15,848
Noncontrolling interests	—		—		—		52		—			52
Total equity	15,848		23,357		22,293		98,388		(143,986		)	15,900
Total liabilities and equity	$	16,957	$	38,184	$	95,057	$	104,834	$	(223,137	)	$	31,895

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2018
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	21	$	—	$	261	$	—		$	283
Short-term investments	—		—		—		157		—			157
Accounts receivable - net	—		483		1,400		1,975		—			3,858
Intercompany accounts    receivable	—		1,575		1,851		2,968		(6,394		)	—
Inventory	—		540		766		1,555		(76		)	2,785
Prepaid expenses and    other current assets	—		107		32		354		14			507
Total current assets	1		2,726		4,049		7,270		(6,456		)	7,590
Property, plant and    equipment - net	—		843		678		1,946		—			3,467
Other noncurrent assets
Goodwill	—		1,330		6,705		5,293		—			13,328
Other intangible assets	—		128		3,054		1,664		—			4,846
Deferred income taxes	—		340		—		288		(335		)	293
Investment in subsidiaries	16,476		25,956		71,334		25,557		(139,323		)	—
Intercompany loans receivable	1,508		5,912		8,406		59,078		(74,904		)	—
Other assets	—		746		117		705		—			1,568
Total assets	$	17,985	$	37,981	$	94,343	$	101,801	$	(221,018	)	$	31,092
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	388	$	—	$	26	$	—		$	414
Current portion of    long-term debt	—		338		—		1		—			339
Accounts payable	—		476		416		1,238		—			2,130
Intercompany accounts payable	32		1,127		3,206		2,029		(6,394		)	—
Accrued compensation	—		135		71		251		—			457
Other current liabilities	30		525		259		1,002		(2		)	1,814
Total current liabilities	62		2,989		3,952		4,547		(6,396		)	5,154
Noncurrent liabilities
Long-term debt	—		5,814		945		7		2			6,768
Pension liabilities	—		383		130		791		—			1,304
Other postretirement    benefits liabilities	—		166		83		72		—			321
Deferred income taxes	—		1		508		175		(335		)	349
Intercompany loans payable	1,816		5,182		66,507		1,399		(74,904		)	—
Other noncurrent liabilities	—		389		291		374		—			1,054
Total noncurrent liabilities	1,816		11,935		68,464		2,818		(75,237		)	9,796
Shareholders’ equity
Eaton shareholders' equity	16,107		23,057		21,927		94,401		(139,385		)	16,107
Noncontrolling interests	—		—		—		35		—			35
Total equity	16,107		23,057		21,927		94,436		(139,385		)	16,142
Total liabilities and equity	$	17,985	$	37,981	$	94,343	$	101,801	$	(221,018	)	$	31,092

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(67	)	$	980		$	415		$	1,186		$	—		$	2,514
Investing activities
Capital expenditures for property,    plant and equipment	—			(74		)	(88		)	(279		)	—			(441		)
Cash paid for acquisitions of businesses, net of cash acquired	—			—			(30		)	(247		)	—			(277		)
Sales (purchases) of short-term investments - net	—			—			—			(132		)	—			(132		)
Loans to affiliates	—			(470		)	(280		)	(5,044		)	5,794			—
Repayments of loans from affiliates	—			663			—			3,156			(3,819		)	—
Proceeds (payments) for settlement of currency exchange contracts not designated as hedges - net	—			—			—			26			—			26
Other - net	—			(21		)	32			(19		)	—			(8		)
Net cash provided by (used in) investing activities	—			98			(366		)	(2,539		)	1,975			(832		)
Financing activities
Proceeds from borrowings	—			—			1,232			—			—			1,232
Payments on borrowings	—			(726		)	—			(31		)	—			(757		)
Proceeds from borrowings from    affiliates	1,927			2,689			428			750			(5,794		)	—
Payments on borrowings from    affiliates	(16		)	(2,781		)	(458		)	(564		)	3,819			—
Other intercompany financing    activities	—			(23		)	(1,239		)	1,262			—			—
Cash dividends paid	(907		)	—			—			—			—			(907		)
Exercise of employee stock options	40			—			—			—			—			40
Repurchase of shares	(978		)	—			—			—			—			(978		)
Employee taxes paid from shares withheld	—			(36		)	(6		)	(3		)	—			(45		)
Other - net	—			—			(6		)	(2		)	—			(8		)
Net cash provided by (used in)    financing activities	66			(877		)	(49		)	1,412			(1,975		)	(1,423		)
Effect of currency on cash	—			—			—			7			—			7
Total increase (decrease) in cash	(1		)	201			—			66			—			266
Cash at the beginning of the period	1			21			—			261			—			283
Cash at the end of the period	$	—		$	222		$	—		$	327		$	—		$	549

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(11	)	$	(174	)	$	393		$	1,718		$	(88	)	$	1,838
Investing activities
Capital expenditures for property,    plant and equipment	—			(75		)	(74		)	(262		)	—			(411		)
Sales (purchases) of short-term investments - net	—			—			—			329			—			329
Investments in affiliates	—			(36		)	—			—			36			—
Loans to affiliates	—			(100		)	(84		)	(4,764		)	4,948			—
Repayments of loans from affiliates	—			647			956			3,893			(5,496		)	—
Proceeds (payments) for settlement of currency exchange contracts not designated as hedges - net	—			11			—			(133		)	—			(122		)
Other - net	—			(26		)	3			(29		)	—			(52		)
Net cash provided by (used in)    investing activities	—			421			801			(966		)	(512		)	(256		)
Financing activities
Proceeds from borrowings	4			65			—			11			—			80
Payments on borrowings	—			(450		)	(35		)	(1		)	—			(486		)
Proceeds from borrowings from    affiliates	2,671			1,995			183			99			(4,948		)	—
Payments on borrowings from    affiliates	(1,227		)	(2,775		)	(654		)	(840		)	5,496			—
Capital contributions from affiliates	—			—			—			36			(36		)	—
Other intercompany financing activities	—			788			(687		)	(101		)	—			—
Cash dividends paid	(864		)	—			—			—			—			(864		)
Cash dividends paid to affiliates	—			—			—			(88		)	88			—
Exercise of employee stock options	28			—			—			—			—			28
Repurchase of shares	(600		)	—			—			—			—			(600		)
Employee taxes paid from shares withheld	—			(16		)	(5		)	(3		)	—			(24		)
Other - net	—			(1		)	—			(1		)	—			(2		)
Net cash provided by (used in)    financing activities	12			(394		)	(1,198		)	(888		)	600			(1,868		)
Effect of currency on cash	—			—			—			52			—			52
Total increase (decrease) in cash	1			(147		)	(4		)	(84		)	—			(234		)
Cash at the beginning of the period	—			183			18			360			—			561
Cash at the end of the period	$	1		$	36		$	14		$	276		$	—		$	327

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LEASES - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Leases [Abstract]
Net gain (loss) on sale leaseback transaction	$ 16

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LEASES - Maturities of Lease Liabilities (Details) $ in Millions	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 165
2020	133
2021	106
2022	75
2023	53
Thereafter	110
Total lease payments	$ 642

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Current assets
Cash	$ 549			$ 283	$ 327			$ 561
Short-term investments	281			157
Accounts receivable - net	3,787			3,858
Intercompany accounts receivable	0			0
Inventory	2,901			2,785
Prepaid expenses and other current assets	494			507
Total current assets	8,012			7,590
Property, plant and equipment - net	3,483			3,467
Other noncurrent assets
Goodwill	13,337			13,328
Other intangible assets	4,657			4,846
Operating lease assets	444			0
Deferred income taxes	294			293
Investment in subsidiaries	0			0
Intercompany loans receivables	0			0
Other assets	1,668			1,568
Total assets	31,895			31,092
Current liabilities
Short-term debt	2			414
Current portion of long-term debt	6			339
Accounts payable	2,290			2,130
Intercompany accounts payable	0			0
Accrued compensation	421			457
Other current liabilities	1,942			1,814
Total current liabilities	4,661			5,154
Noncurrent liabilities
Long-term debt	8,013			6,768
Pension liabilities	1,239			1,304
Other postretirement benefits liabilities	322			321
Operating lease liabilities	333			0
Deferred income taxes	309			349
Intercompany loans payable	0			0
Other noncurrent liabilities	1,118			1,054
Total noncurrent liabilities	11,334			9,796
Shareholders’ equity
Eaton shareholders' equity	15,848			16,107
Noncontrolling interests	52			35
Total equity	15,900	$ 16,361	$ 16,267	16,142	16,789	$ 16,725	$ 17,301	17,290
Total liabilities and equity	31,895			31,092
Consolidating adjustments
Current assets
Cash	0			0	0			0
Short-term investments	0			0
Accounts receivable - net	0			0
Intercompany accounts receivable	(5,502)			(6,394)
Inventory	(79)			(76)
Prepaid expenses and other current assets	15			14
Total current assets	(5,566)			(6,456)
Property, plant and equipment - net	0			0
Other noncurrent assets
Goodwill	0			0
Other intangible assets	0			0
Operating lease assets	0
Deferred income taxes	(335)			(335)
Investment in subsidiaries	(143,924)			(139,323)
Intercompany loans receivables	(73,312)			(74,904)
Other assets	0			0
Total assets	(223,137)			(221,018)
Current liabilities
Short-term debt	0			0
Current portion of long-term debt	0			0
Accounts payable	0			0
Intercompany accounts payable	(5,502)			(6,394)
Accrued compensation	0			0
Other current liabilities	(2)			(2)
Total current liabilities	(5,504)			(6,396)
Noncurrent liabilities
Long-term debt	0			2
Pension liabilities	0			0
Other postretirement benefits liabilities	0			0
Operating lease liabilities	0
Deferred income taxes	(335)			(335)
Intercompany loans payable	(73,312)			(74,904)
Other noncurrent liabilities	0			0
Total noncurrent liabilities	(73,647)			(75,237)
Shareholders’ equity
Eaton shareholders' equity	(143,986)			(139,385)
Noncontrolling interests	0			0
Total equity	(143,986)			(139,385)
Total liabilities and equity	(223,137)			(221,018)
Other subsidiaries
Current assets
Cash	327			261	276			360
Short-term investments	281			157
Accounts receivable - net	2,023			1,975
Intercompany accounts receivable	2,681			2,968
Inventory	1,546			1,555
Prepaid expenses and other current assets	347			354
Total current assets	7,205			7,270
Property, plant and equipment - net	1,963			1,946
Other noncurrent assets
Goodwill	5,302			5,293
Other intangible assets	1,593			1,664
Operating lease assets	223
Deferred income taxes	278			288
Investment in subsidiaries	27,306			25,557
Intercompany loans receivables	60,233			59,078
Other assets	731			705
Total assets	104,834			101,801
Current liabilities
Short-term debt	2			26
Current portion of long-term debt	2			1
Accounts payable	1,288			1,238
Intercompany accounts payable	1,157			2,029
Accrued compensation	263			251
Other current liabilities	1,086			1,002
Total current liabilities	3,798			4,547
Noncurrent liabilities
Long-term debt	6			7
Pension liabilities	734			791
Other postretirement benefits liabilities	73			72
Operating lease liabilities	170
Deferred income taxes	186			175
Intercompany loans payable	1,119			1,399
Other noncurrent liabilities	360			374
Total noncurrent liabilities	2,648			2,818
Shareholders’ equity
Eaton shareholders' equity	98,336			94,401
Noncontrolling interests	52			35
Total equity	98,388			94,436
Total liabilities and equity	104,834			101,801
Guarantors
Current assets
Cash	0			0	14			18
Short-term investments	0			0
Accounts receivable - net	1,289			1,400
Intercompany accounts receivable	1,957			1,851
Inventory	857			766
Prepaid expenses and other current assets	32			32
Total current assets	4,135			4,049
Property, plant and equipment - net	669			678
Other noncurrent assets
Goodwill	6,705			6,705
Other intangible assets	2,941			3,054
Operating lease assets	62
Deferred income taxes	0			0
Investment in subsidiaries	73,052			71,334
Intercompany loans receivables	7,334			8,406
Other assets	159			117
Total assets	95,057			94,343
Current liabilities
Short-term debt	0			0
Current portion of long-term debt	0			0
Accounts payable	508			416
Intercompany accounts payable	2,981			3,206
Accrued compensation	59			71
Other current liabilities	269			259
Total current liabilities	3,817			3,952
Noncurrent liabilities
Long-term debt	2,107			945
Pension liabilities	127			130
Other postretirement benefits liabilities	82			83
Operating lease liabilities	47
Deferred income taxes	458			508
Intercompany loans payable	65,822			66,507
Other noncurrent liabilities	304			291
Total noncurrent liabilities	68,947			68,464
Shareholders’ equity
Eaton shareholders' equity	22,293			21,927
Noncontrolling interests	0			0
Total equity	22,293			21,927
Total liabilities and equity	95,057			94,343
Eaton Corporation
Current assets
Cash	222			21	36			183
Short-term investments	0			0
Accounts receivable - net	475			483
Intercompany accounts receivable	855			1,575
Inventory	577			540
Prepaid expenses and other current assets	100			107
Total current assets	2,229			2,726
Property, plant and equipment - net	851			843
Other noncurrent assets
Goodwill	1,330			1,330
Other intangible assets	123			128
Operating lease assets	159
Deferred income taxes	351			340
Investment in subsidiaries	26,627			25,956
Intercompany loans receivables	5,736			5,912
Other assets	778			746
Total assets	38,184			37,981
Current liabilities
Short-term debt	0			388
Current portion of long-term debt	4			338
Accounts payable	494			476
Intercompany accounts payable	1,355			1,127
Accrued compensation	99			135
Other current liabilities	588			525
Total current liabilities	2,540			2,989
Noncurrent liabilities
Long-term debt	5,900			5,814
Pension liabilities	378			383
Other postretirement benefits liabilities	167			166
Operating lease liabilities	116
Deferred income taxes	0			1
Intercompany loans payable	5,272			5,182
Other noncurrent liabilities	454			389
Total noncurrent liabilities	12,287			11,935
Shareholders’ equity
Eaton shareholders' equity	23,357			23,057
Noncontrolling interests	0			0
Total equity	23,357			23,057
Total liabilities and equity	38,184			37,981
Eaton Corporation plc
Current assets
Cash	0			1	$ 1			$ 0
Short-term investments	0			0
Accounts receivable - net	0			0
Intercompany accounts receivable	9			0
Inventory	0			0
Prepaid expenses and other current assets	0			0
Total current assets	9			1
Property, plant and equipment - net	0			0
Other noncurrent assets
Goodwill	0			0
Other intangible assets	0			0
Operating lease assets	0
Deferred income taxes	0			0
Investment in subsidiaries	16,939			16,476
Intercompany loans receivables	9			1,508
Other assets	0			0
Total assets	16,957			17,985
Current liabilities
Short-term debt	0			0
Current portion of long-term debt	0			0
Accounts payable	0			0
Intercompany accounts payable	9			32
Accrued compensation	0			0
Other current liabilities	1			30
Total current liabilities	10			62
Noncurrent liabilities
Long-term debt	0			0
Pension liabilities	0			0
Other postretirement benefits liabilities	0			0
Operating lease liabilities	0
Deferred income taxes	0			0
Intercompany loans payable	1,099			1,816
Other noncurrent liabilities	0			0
Total noncurrent liabilities	1,099			1,816
Shareholders’ equity
Eaton shareholders' equity	15,848			16,107
Noncontrolling interests	0			0
Total equity	15,848			16,107
Total liabilities and equity	$ 16,957			$ 17,985

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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Current assets
Cash	$ 549	$ 283
Short-term investments	281	157
Accounts receivable - net	3,787	3,858
Inventory	2,901	2,785
Prepaid expenses and other current assets	494	507
Total current assets	8,012	7,590
Land and buildings	2,436	2,466
Machinery and equipment	6,257	6,106
Gross property, plant and equipment	8,693	8,572
Accumulated depreciation	(5,210)	(5,105)
Net property, plant and equipment	3,483	3,467
Other noncurrent assets
Goodwill	13,337	13,328
Other intangible assets	4,657	4,846
Operating lease assets	444	0
Deferred income taxes	294	293
Other assets	1,668	1,568
Total assets	31,895	31,092
Current liabilities
Short-term debt	2	414
Current portion of long-term debt	6	339
Accounts payable	2,290	2,130
Accrued compensation	421	457
Other current liabilities	1,942	1,814
Total current liabilities	4,661	5,154
Noncurrent liabilities
Long-term debt	8,013	6,768
Pension liabilities	1,239	1,304
Other postretirement benefits liabilities	322	321
Operating lease liabilities	333	0
Deferred income taxes	309	349
Other noncurrent liabilities	1,118	1,054
Total noncurrent liabilities	11,334	9,796
Shareholders’ equity
Ordinary shares (413.4 million outstanding in 2019 and 423.6 million in 2018)	4	4
Capital in excess of par value	12,151	12,090
Retained Earnings	8,062	8,161
Accumulated Other Comprehensive Loss	(4,367)	(4,145)
Shares held in trust	(2)	(3)
Total Eaton shareholders’ equity	15,848	16,107
Noncontrolling interests	52	35
Total equity	15,900	16,142
Total liabilities and equity	$ 31,895	$ 31,092

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INVENTORY (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 1,094	$ 1,077
Work-in-process	578	500
Finished goods	1,229	1,208
Total inventory	$ 2,901	$ 2,785

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ACQUISITION AND DIVESTITURE OF BUSINESSES

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Acquisition and Divestiture of Businesses

ACQUISITIONS AND DIVESTITURES OF BUSINESSES

Acquired controlling interest of Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S.

On April 15, 2019, Eaton completed the acquisition of an 82.275% controlling interest in Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S. (Ulusoy Elektrik), a leading manufacturer of electrical switchgear based in Ankara, Turkey, with a primary focus on medium-voltage solutions for industrial and utility customers. Its sales for the 12 months ended September 30, 2018 were $126. The purchase price for the shares is approximately $214 on a cash and debt free basis. As required by the Turkish capital markets legislation, Eaton filed an application to execute a mandatory tender offer for the remaining shares shortly after the transaction closed. During the tender offer, Eaton purchased additional shares for $33 through July 2019 to increase its ownership interest to 93.7%. Ulusoy Elektrik is reported within the Electrical Systems and Services business segment.

Acquisition of Innovative Switchgear Solutions, Inc.

On July 19, 2019, Eaton acquired Innovative Switchgear Solutions, Inc. (ISG), a specialty manufacturer of medium-voltage electrical equipment serving the North American utility, commercial and industrial markets. Its 2018 sales were approximately $18. ISG will be reported within the Electrical Systems and Services business segment.

Agreement to acquire Souriau-Sunbank Connection Technologies

On July 22, 2019, Eaton committed to acquire the Souriau-Sunbank Connection Technologies (Souriau-Sunbank) business of TransDigm Group Inc. for $920. Headquartered in Versailles, France, Souriau-Sunbank is a global leader in highly engineered electrical interconnect solutions for harsh environments in the aerospace, defense, industrial, energy, and transport markets. Its sales for the 12 months ended June 30, 2019 were $363. The purchase agreement was signed on October 28, 2019. The transaction is subject to customary closing conditions and is expected to close by the end of 2019.

Sale of Lighting business

On March 1, 2019, Eaton announced it plans to pursue a tax-free spin-off of its Lighting business. On October 15, 2019, Eaton entered into an agreement to sell its Lighting business to Signify N.V. for a cash purchase price of $1.4 billion. The decision to sell the Lighting business comes after completing a comprehensive review of various potential transaction alternatives. The Lighting business, which had sales of $1.7 billion in 2018 as part of the Electrical Products segment, serves customers in commercial, industrial, residential and municipal markets. Eaton expects the Lighting business to be classified as held for sale during the fourth quarter of 2019. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2020.

Plan to divest Automotive Fluid Conveyance business

On March 1, 2019, Eaton announced it plans to sell its Automotive Fluid Conveyance business.

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Amounts Recorded on Balance Sheet Related to Fixed-to-Floating Interest Rate Swaps (Details) - Long-term debt $ in Millions	Sep. 30, 2019 USD ($)
Derivative [Line Items]
Discontinued hedge, cumulative adjustment	$ (41)
Interest Rate Swap
Derivative [Line Items]
Carrying amount of the hedged assets (liabilities)	(2,838)
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged asset (liabilities)	$ (112)

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LEASES (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Components of Lease Expense

The components of lease expense follows:

	Three months ended September 30, 2019			Nine months ended September 30, 2019
Operating lease cost	$	41		$	119
Finance lease cost:
Amortization of lease assets	1			3
Interest on lease liabilities	—			1
Short-term lease cost	13			40
Variable lease cost	6			17
Sublease income	(1		)	(3		)
Total lease cost	$	60		$	177

Supplemental Cash Flow Related To Leases

Supplemental cash flow information related to leases follows:

	Nine months ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows - payments on operating leases	$	(118	)
Operating cash outflows - interest payments on finance leases	(1		)
Financing cash outflows - payments on finance lease obligations	(3		)
Lease assets obtained in exchange for new lease obligations:
Operating leases	$	95
Finance leases	17

Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases follows:

	September 30, 2019
Operating Leases
Operating lease assets	$	444
Other current liabilities	124
Operating lease liabilities	333
Total operating lease liabilities	$	457
Finance Leases
Land and buildings	$	16
Machinery and equipment	17
Accumulated depreciation	(14		)
Net property, plant and equipment	$	19
Current portion of long-term debt	$	6
Long-term debt	14
Total finance lease liabilities	$	20
Weighted-average remaining lease term
Operating leases	5.1 years
Finance leases	3.6 years
Weighted-average discount rate
Operating leases	3.6		%
Finance leases	5.9		%

Lessee, Operating Lease, Liability, Maturity

Maturities of lease liabilities at September 30, 2019 follows:

	Operating Leases		Finance Leases
2019	$	40	$	2
2020	137		7
2021	106		6
2022	75		4
2023	50		3
Thereafter	105		1
Total lease payments	$	513	$	23
Less imputed interest	56		3
Total present value of lease liabilities	$	457	$	20

Finance Lease, Liability, Maturity

Maturities of lease liabilities at September 30, 2019 follows:

	Operating Leases		Finance Leases
2019	$	40	$	2
2020	137		7
2021	106		6
2022	75		4
2023	50		3
Thereafter	105		1
Total lease payments	$	513	$	23
Less imputed interest	56		3
Total present value of lease liabilities	$	457	$	20

Schedule of Future Minimum Rental Payments for Operating Leases

at December 31, 2018 under noncancelable operating leases, which expire at various dates and in most cases contain renewal options, for each of the next five years and thereafter in the aggregate, follow:

	Operating Leases
2019	$	165
2020	133
2021	106
2022	75
2023	53
Thereafter	110
Total lease commitments	$	642

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BASIS OF PRESENTATION (Policies)

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting

The accompanying unaudited condensed consolidated financial statements of Eaton Corporation plc (Eaton or the Company) have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles (US GAAP) for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are necessary for a fair presentation of the condensed consolidated financial statements for the interim periods.

This Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in Eaton’s 2018 Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. Management has evaluated subsequent events through the date this Form 10-Q was filed with the Securities and Exchange Commission.

Leases

Leases

The Company determines if an arrangement is a lease at inception. Operating lease assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. As most leases do not provide an implicit interest rate, Eaton uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The length of a lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options. The Company made an accounting policy election to not recognize lease assets or liabilities for leases with a term of 12 months or less. Additionally, when accounting for leases, the Company combines payments for leased assets, related services and other components of a lease.

Adoption of ASU 2016-02

Adoption of New Accounting Standards

Eaton adopted Accounting Standard Update 2016-02, Leases (Topic 842), and related amendments, in the first quarter of 2019 using the optional transition method and has not restated prior periods. The Company elected to use the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the carry forward of historical lease classification of existing leases. The Company recorded a cumulative-effect adjustment of less than $1 to retained earnings as of January 1, 2019. Additionally, the adoption of the new standard resulted in the recording of lease assets and lease liabilities for operating leases of $435 and $446, respectively, as of January 1, 2019. The adoption of the standard did not have a material impact to the Consolidated Statements of Income or Cash Flows.

Adoption of ASU 2017-12

Eaton adopted Accounting Standard Update 2017-12, Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities, in the first quarter 2019 using the modified retrospective approach for hedge instruments that existed at the date of adoption. ASU 2017-12 is intended to better align the Company's risk management activities with financial reporting for hedging relationships. The standard eliminates the requirement to separately measure and report hedge ineffectiveness, expands the ability to hedge specific risk components, and generally requires the change in value of the hedge instrument and hedged item to be presented in the same income statement line. The new disclosure requirements were applied on a prospective basis and comparative information has not been restated. The adoption of the standard did not have a material impact on the consolidated financial statements.

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LEASES - Components of Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Leases [Abstract]
Operating lease cost	$ 41	$ 119
Finance lease cost - Amortization of lease assets	1	3
Interest on lease liabilities	0	1
Short-term lease cost	13	40
Variable lease cost	6	17
Sublease income	(1)	(3)
Total lease cost	$ 60	$ 177

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LEASES - Maturities of Lease Liabilities Operating and Financing (Details) $ in Millions	Sep. 30, 2019 USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2019	$ 40
2020	137
2021	106
2022	75
2023	50
Thereafter	105
Total lease payments	513
Less imputed interest	56
Operating Lease Liabilities	457
Finance Lease, Liability, Payment, Due [Abstract]
2019	2
2020	7
2021	6
2022	4
2023	3
Thereafter	1
Total lease payments	23
Less imputed interest	3
Total finance lease liabilities	$ 20

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BUSINESS SEGMENT INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Business Segment Information
Net sales	$ 5,314			$ 5,412			$ 16,152	$ 16,150
Corporate
Interest expense - net	54			67			183	205
Pension and other postretirement benefits expense							(115)	(123)
Arbitration decision expense	0			275			0	275
Other corporate expense - net	(2)			7			(35)	13
Income before income taxes	718			439			2,059	1,698
Income tax expense	116			23			299	184
Net income	602	$ 636	$ 522	416	$ 611	$ 487	1,760	1,514
Less net loss (income) for noncontrolling interests	(1)			0			(1)	0
Net Income Attributable to Eaton ordinary shareholders	601			416			1,759	1,514
Electrical Products
Business Segment Information
Net sales	1,786			1,789			5,395	5,327
Electrical Systems and Services
Business Segment Information
Net sales	1,572			1,519			4,618	4,413
Hydraulics
Business Segment Information
Net sales	603			670			1,987	2,103
Aerospace
Business Segment Information
Net sales	513			478			1,532	1,399
Vehicle
Business Segment Information
Net sales	761			876			2,374	2,668
eMobility
Business Segment Information
Net sales	79			80			246	240
Total business segments
Business Segment Information
Net sales	5,314			5,412			16,152	16,150
Segment operating profit	986			952			2,818	2,680
Total business segments | Electrical Products
Business Segment Information
Net sales	1,786			1,789			5,395	5,327
Segment operating profit	358			343			1,050	984
Total business segments | Electrical Systems and Services
Business Segment Information
Net sales	1,572			1,519			4,618	4,413
Segment operating profit	284			234			751	628
Total business segments | Hydraulics
Business Segment Information
Net sales	603			670			1,987	2,103
Segment operating profit	72			94			232	285
Total business segments | Aerospace
Business Segment Information
Net sales	513			478			1,532	1,399
Segment operating profit	129			105			372	284
Total business segments | Vehicle
Business Segment Information
Net sales	761			876			2,374	2,668
Segment operating profit	139			166			397	464
Total business segments | eMobility
Business Segment Information
Net sales	79			80			246	240
Segment operating profit	4			10			16	35
Corporate
Corporate
Amortization of intangible assets	(93)			(95)			(280)	(289)
Interest expense - net	(54)			(67)			(183)	(205)
Pension and other postretirement benefits expense	(5)			(3)			(7)	(4)
Arbitration decision expense	0			(275)			0	(275)
Other corporate expense - net	$ (116)			$ (73)			$ (289)	$ (209)

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ACQUISITION, INTEGRATION AND DIVESTITURE CHARGES

9 Months Ended

Sep. 30, 2019

Acquisition, Integration and Divestiture Charges [Abstract]

ACQUISITION INTEGRATION CHARGES

ACQUISITION INTEGRATION AND DIVESTITURE CHARGES

Eaton incurs integration charges related to acquired businesses, and transaction and other charges to divest and exit businesses. A summary of these charges follows:

	Three months ended September 30				Nine months ended September 30
	2019		2018		2019		2018
Electrical Products	$	4	$	—	$	6	$	—
Electrical Systems and Services	3		—		4		—
Corporate	32		—		55		—
Total acquisition integration and divestiture charges before income tax	39		—		65		—
Income taxes	4		—		5		—
Total after income taxes	$	35	$	—	$	60	$	—
Per ordinary share - diluted	$	0.08	$	—	$	0.14	$	—

Business segment charges in 2019 related to the planned divestiture of the Lighting business and the acquisitions of Ulusoy Elektrik and ISG, and were included in Cost of products sold, Selling and administrative expense or Research and development expense. In Business Segment Information, the charges reduced Operating profit of the related business segment.

Corporate charges in 2019 are primarily related to the planned divestiture of the Lighting business and other charges to exit businesses, and were included in Selling and administrative expense and Other (income) expense-net. In Business Segment Information, the charges were included in Other corporate expense - net.

See Note 15 for additional information about business segments.

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Impact of Derivative on Consolidated Statement of Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Net sales	$ 5,314	$ 5,412	$ 16,152	$ 16,150
Cost of products sold	3,512	$ 3,597	10,782	$ 10,841
Interest expense - net	54		183
Cash Flow Hedging | Net Sales | Currency exchange contracts
Derivative [Line Items]
Gain (loss) on hedged item	1		6
Gain (loss) on hedging instrument	(1)		(6)
Cash Flow Hedging | Net Sales | Commodity contracts
Derivative [Line Items]
Gain (loss) on hedged item	0		0
Gain (loss) on hedging instrument	0		0
Cash Flow Hedging | Cost of products sold | Currency exchange contracts
Derivative [Line Items]
Gain (loss) on hedged item	(1)		(10)
Gain (loss) on hedging instrument	1		10
Cash Flow Hedging | Cost of products sold | Commodity contracts
Derivative [Line Items]
Gain (loss) on hedged item	0		0
Gain (loss) on hedging instrument	0		0
Cash Flow Hedging | Interest expense - net | Currency exchange contracts
Derivative [Line Items]
Gain (loss) on hedged item	0		0
Gain (loss) on hedging instrument	0		0
Cash Flow Hedging | Interest expense - net | Commodity contracts
Derivative [Line Items]
Gain (loss) on hedged item	0		0
Gain (loss) on hedging instrument	0		0
Fair value hedging | Net Sales | Interest Rate Swap
Derivative [Line Items]
Gain (loss) on hedged item	0		0
Gain (loss) on hedging instrument	0		0
Fair value hedging | Cost of products sold | Interest Rate Swap
Derivative [Line Items]
Gain (loss) on hedged item	0		0
Gain (loss) on hedging instrument	0		0
Fair value hedging | Interest expense - net | Interest Rate Swap
Derivative [Line Items]
Gain (loss) on hedged item	(13)		(76)
Gain (loss) on hedging instrument	$ 13		$ 76

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Cover Page shares in Millions	9 Months Ended
	Sep. 30, 2019 shares
Cover page.
Entity Registrant Name	EATON CORPORATION plc
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Current Fiscal Year End Date	--12-31
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	L2
City Area Code	+353
Local Phone Number	1637 2900
Entity Central Index Key	0001551182
Entity File Number	000-54863
Amendment Flag	false
Document Fiscal Period Focus	Q3
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding (in shares)	413.4
Entity Tax Identification Number	98-1059235
Entity Address, Address Line One	Eaton House,
Entity Address, Address Line Two	30 Pembroke Road,
Entity Address, City or Town	Dublin 4,
Entity Address, Country	IE
Entity Address, Postal Zip Code	D04 Y0C2
Title of 12(b) Security	Ordinary shares ($0.01 par value)
Trading Symbol	ETN
Security Exchange Name	NYSE

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	$ 2,514	$ 1,838
Investing activities
Capital expenditures for property, plant and equipment	(441)	(411)
Cash paid for acquisitions of businesses, net of cash acquired	(277)	0
Sales (purchases) of short-term investments - net	(132)	329
Investments in affiliates		0
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Proceeds (payments) for settlement of currency exchange contracts not designated as hedges - net	26	(122)
Other - net	(8)	(52)
Net cash provided by (used in) investing activities	(832)	(256)
Financing activities
Proceeds from borrowings	1,232	80
Payments on borrowings	(757)	(486)
Proceeds from borrowings from affiliates	0	0
Payments on borrowings from affiliates	0	0
Capital contributions from affiliates		0
Other intercompany financing activities	0	0
Cash dividends paid	(907)	(864)
Cash dividends paid to affiliates		0
Exercise of employee stock options	40	28
Repurchase of shares	(978)	(600)
Payment, Tax Withholding, Share-based Payment Arrangement	(45)	(24)
Other - net	(8)	(2)
Net cash provided by (used in) financing activities	(1,423)	(1,868)
Effect of currency on cash	7	52
Total increase (decrease) in cash	266	(234)
Cash at the beginning of the period	283	561
Cash at the end of the period	549	327
Consolidating adjustments
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	0	(88)
Investing activities
Capital expenditures for property, plant and equipment	0	0
Cash paid for acquisitions of businesses, net of cash acquired	0
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates		36
Loans to affiliates	5,794	4,948
Repayments of loans from affiliates	(3,819)	(5,496)
Proceeds (payments) for settlement of currency exchange contracts not designated as hedges - net	0	0
Other - net	0	0
Net cash provided by (used in) investing activities	1,975	(512)
Financing activities
Proceeds from borrowings	0	0
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	(5,794)	(4,948)
Payments on borrowings from affiliates	3,819	5,496
Capital contributions from affiliates		(36)
Other intercompany financing activities	0	0
Cash dividends paid	0	0
Cash dividends paid to affiliates		88
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Payment, Tax Withholding, Share-based Payment Arrangement	0	0
Other - net	0	0
Net cash provided by (used in) financing activities	(1,975)	600
Effect of currency on cash	0	0
Total increase (decrease) in cash	0	0
Cash at the beginning of the period	0	0
Cash at the end of the period	0	0
Guarantors
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	415	393
Investing activities
Capital expenditures for property, plant and equipment	(88)	(74)
Cash paid for acquisitions of businesses, net of cash acquired	(30)
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates		0
Loans to affiliates	(280)	(84)
Repayments of loans from affiliates	0	956
Proceeds (payments) for settlement of currency exchange contracts not designated as hedges - net	0	0
Other - net	32	3
Net cash provided by (used in) investing activities	(366)	801
Financing activities
Proceeds from borrowings	1,232	0
Payments on borrowings	0	(35)
Proceeds from borrowings from affiliates	428	183
Payments on borrowings from affiliates	(458)	(654)
Capital contributions from affiliates		0
Other intercompany financing activities	(1,239)	(687)
Cash dividends paid	0	0
Cash dividends paid to affiliates		0
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Payment, Tax Withholding, Share-based Payment Arrangement	(6)	(5)
Other - net	(6)	0
Net cash provided by (used in) financing activities	(49)	(1,198)
Effect of currency on cash	0	0
Total increase (decrease) in cash	0	(4)
Cash at the beginning of the period	0	18
Cash at the end of the period	0	14
Other subsidiaries
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	1,186	1,718
Investing activities
Capital expenditures for property, plant and equipment	(279)	(262)
Cash paid for acquisitions of businesses, net of cash acquired	(247)
Sales (purchases) of short-term investments - net	(132)	329
Investments in affiliates		0
Loans to affiliates	(5,044)	(4,764)
Repayments of loans from affiliates	3,156	3,893
Proceeds (payments) for settlement of currency exchange contracts not designated as hedges - net	26	(133)
Other - net	(19)	(29)
Net cash provided by (used in) investing activities	(2,539)	(966)
Financing activities
Proceeds from borrowings	0	11
Payments on borrowings	(31)	(1)
Proceeds from borrowings from affiliates	750	99
Payments on borrowings from affiliates	(564)	(840)
Capital contributions from affiliates		36
Other intercompany financing activities	1,262	(101)
Cash dividends paid	0	0
Cash dividends paid to affiliates		(88)
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Payment, Tax Withholding, Share-based Payment Arrangement	(3)	(3)
Other - net	(2)	(1)
Net cash provided by (used in) financing activities	1,412	(888)
Effect of currency on cash	7	52
Total increase (decrease) in cash	66	(84)
Cash at the beginning of the period	261	360
Cash at the end of the period	327	276
Eaton Corporation plc
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	(67)	(11)
Investing activities
Capital expenditures for property, plant and equipment	0	0
Cash paid for acquisitions of businesses, net of cash acquired	0
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates		0
Loans to affiliates	0	0
Repayments of loans from affiliates	0	0
Proceeds (payments) for settlement of currency exchange contracts not designated as hedges - net	0	0
Other - net	0	0
Net cash provided by (used in) investing activities	0	0
Financing activities
Proceeds from borrowings	0	4
Payments on borrowings	0	0
Proceeds from borrowings from affiliates	1,927	2,671
Payments on borrowings from affiliates	(16)	(1,227)
Capital contributions from affiliates		0
Other intercompany financing activities	0	0
Cash dividends paid	(907)	(864)
Cash dividends paid to affiliates		0
Exercise of employee stock options	40	28
Repurchase of shares	(978)	(600)
Payment, Tax Withholding, Share-based Payment Arrangement	0	0
Other - net	0	0
Net cash provided by (used in) financing activities	66	12
Effect of currency on cash	0	0
Total increase (decrease) in cash	(1)	1
Cash at the beginning of the period	1	0
Cash at the end of the period	0	1
Eaton Corporation
Condensed Consolidating Statements of Cash Flows, Captions [Line Items]
Net cash provided by (used in) operating activities	980	(174)
Investing activities
Capital expenditures for property, plant and equipment	(74)	(75)
Cash paid for acquisitions of businesses, net of cash acquired	0
Sales (purchases) of short-term investments - net	0	0
Investments in affiliates		(36)
Loans to affiliates	(470)	(100)
Repayments of loans from affiliates	663	647
Proceeds (payments) for settlement of currency exchange contracts not designated as hedges - net	0	11
Other - net	(21)	(26)
Net cash provided by (used in) investing activities	98	421
Financing activities
Proceeds from borrowings	0	65
Payments on borrowings	(726)	(450)
Proceeds from borrowings from affiliates	2,689	1,995
Payments on borrowings from affiliates	(2,781)	(2,775)
Capital contributions from affiliates		0
Other intercompany financing activities	(23)	788
Cash dividends paid	0	0
Cash dividends paid to affiliates		0
Exercise of employee stock options	0	0
Repurchase of shares	0	0
Payment, Tax Withholding, Share-based Payment Arrangement	(36)	(16)
Other - net	0	(1)
Net cash provided by (used in) financing activities	(877)	(394)
Effect of currency on cash	0	0
Total increase (decrease) in cash	201	(147)
Cash at the beginning of the period	21	183
Cash at the end of the period	$ 222	$ 36

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CONSOLIDATED BALANCE SHEETS Parentheticals - shares shares in Millions	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Ordinary shares outstanding shares	413.4	423.6

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FAIR VALUE MEASUREMENTS - Other Fair Value Measurements (Details) - Level 2 - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Other Fair Value Measurements [Line Items]
Carrying value of long-term debt and current portion of long-term debt	$ 8,019	$ 7,107
Fair value of long-term debt and current portion of long-term debt	$ 8,600	$ 7,061

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EQUITY - Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			$ (4,145)				$ (4,145)
Other comprehensive (loss) income before reclassifications							(300)
Amounts reclassified from Accumulated other comprehensive loss							78
Other comprehensive loss attributable to Eaton ordinary shareholders	$ (259)	$ (30)	67	$ (98)	$ (624)	$ 296	(222)	$ (426)
Ending balance	(4,367)						(4,367)
Currency translation and related hedging instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(2,864)				(2,864)
Other comprehensive (loss) income before reclassifications							(235)
Amounts reclassified from Accumulated other comprehensive loss							0
Other comprehensive loss attributable to Eaton ordinary shareholders							(235)
Ending balance	(3,099)						(3,099)
Pensions and other postretirement benefits
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(1,278)				(1,278)
Other comprehensive (loss) income before reclassifications							7
Amounts reclassified from Accumulated other comprehensive loss							81
Other comprehensive loss attributable to Eaton ordinary shareholders							88
Ending balance	(1,190)						(1,190)
Cash flow hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(3)				(3)
Other comprehensive (loss) income before reclassifications							(72)
Amounts reclassified from Accumulated other comprehensive loss							(3)
Other comprehensive loss attributable to Eaton ordinary shareholders							(75)
Ending balance	(78)						(78)
Accumulated other comprehensive loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(4,145)				(4,145)
Other comprehensive loss attributable to Eaton ordinary shareholders	(259)	$ (30)	$ 67	$ (98)	$ (624)	$ 296
Ending balance	$ (4,367)						$ (4,367)

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LEGAL CONTINGENCIES

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

LEGAL CONTINGENCIES

LEGAL CONTINGENCIES

Eaton is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations, tax audits, patent infringement, personal injuries, antitrust matters, and employment-related matters. Eaton is also subject to asbestos claims from historic products which may have contained asbestos. Insurance may cover some of the costs associated with these claims and proceedings. Although it is not possible to predict with certainty the outcome or cost of these matters, the Company believes they will not have a material adverse effect on the consolidated financial statements.

In December 2011, Pepsi-Cola Metropolitan Bottling Company, Inc. (“Pepsi”) filed an action against (a) Cooper Industries, LLC, Cooper Industries, Ltd., Cooper Holdings, Ltd., Cooper US, Inc., and Cooper Industries plc (collectively, “Cooper”), (b) M&F Worldwide Corp., Mafco Worldwide Corp., Mafco Consolidated Group LLC, and PCT International Holdings, Inc. (collectively, “Mafco”), and (c) the Pneumo Abex Asbestos Claims Settlement Trust (the “Trust”) in Texas state court. Pepsi alleged that it was harmed by a 2011 settlement agreement (“2011 Settlement”) among Cooper, Mafco, and Pneumo Abex, LLC (“Pneumo,” which prior to the 2011 Settlement was a Mafco subsidiary), which settlement resolved litigation that Pneumo had previously brought against Cooper involving, among other things, a guaranty related to Pneumo’s friction products business. In November 2015, after a Texas court ruled that Pepsi's claims should be heard in arbitration, Pepsi filed a demand for arbitration against Cooper, Mafco, the Trust, and Pneumo. Pepsi subsequently dropped claims against all parties except Cooper. An arbitration under the auspices of the American Arbitration Association commenced in October 2017. Pepsi’s experts opined, among other things, that the value contributed to the Trust for a release of the guaranty was below reasonably equivalent value, and that an inability of Pneumo to satisfy future liabilities could result in plaintiffs suing Pepsi under various theories. Cooper submitted various expert reports and, among other things, Cooper’s experts opined that Pepsi had no basis to seek any damages and that Cooper paid reasonably equivalent value for the release of its indemnity obligations under the guaranty. The arbitration proceedings closed in December 2017. On July 11, 2018, the arbitration panel made certain findings and concluded that the value contributed to the Trust did not constitute reasonably equivalent value, but ordered the parties to recalculate the amount that should have been contributed to the Trust as of the date of the 2011 transaction. Based on the findings made by the panel and the recalculation ordered by the panel, Cooper believed that no additional amount should be contributed. Pepsi argued that an additional $347 should be contributed. Cooper and its expert disagreed with Pepsi’s argument and believed that Pepsi’s recalculation was flawed and failed to comply with the instructions of the panel. On August 23, 2018, the panel issued its final award and ordered Cooper to pay $293 to Pneumo Abex. On August 30, 2018, Pepsi sought to confirm the award in Texas state court, which Cooper opposed on October 9, 2018. Cooper further requested that the court vacate the award on various grounds, including that Cooper was prejudiced by the conduct of the proceedings, the panel exceeded its powers, and because the panel denied Cooper a full and fair opportunity to present certain evidence. The court confirmed the award at the confirmation hearing, which was held on October 12, 2018. On November 2, 2018, the Company appealed. On November 28, 2018, the Company paid $297, the full judgment plus accrued post-judgment interest, to Pneumo Abex and preserved its rights, including to appeal. On April 25, 2019, the appeal that Cooper filed was dismissed.

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GOODWILL

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL

Change in the carrying amount of goodwill by segment follows:

	December 31, 2018		Additions		Translation			September 30, 2019
Electrical Products	$	6,562	$	—	$	(97	)	$	6,465
Electrical Systems and Services	4,241		164		(29		)	4,376
Hydraulics	1,212		—		(23		)	1,189
Aerospace	941		—		(3		)	938
Vehicle	292		—		(3		)	289
eMobility	80		—		—			80
Total	$	13,328	$	164	$	(155	)	$	13,337

The 2019 additions to goodwill relate to the anticipated synergies of acquiring Ulusoy Elektrik and ISG. The allocations of the purchase price from these acquisitions are preliminary and will be completed during the measurement period.

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

In the normal course of business, Eaton is exposed to certain risks related to fluctuations in interest rates, currency exchange rates and commodity prices. The Company uses various derivative and non-derivative financial instruments, primarily interest rate swaps, currency forward exchange contracts, currency swaps and, commodity contracts to manage risks from these market fluctuations. The instruments used by Eaton are straightforward, non-leveraged instruments. The counterparties to these instruments are financial institutions with strong credit ratings. Eaton maintains control over the size of positions entered into with any one counterparty and regularly monitors the credit rating of these institutions. Such instruments are not purchased and sold for trading purposes.

Derivative financial instruments are accounted for at fair value and recognized as assets or liabilities in the Consolidated Balance Sheets. Accounting for the gain or loss resulting from the change in the fair value of the derivative financial instrument depends on whether it has been designated, and is effective, as part of a hedging relationship and, if so, as to the nature of the hedging activity. Eaton formally documents all relationships between derivative financial instruments accounted for as designated hedges and the hedged item, as well as its risk-management objective and strategy for undertaking the hedge transaction. This process includes linking derivative financial instruments to a recognized asset or liability, specific firm commitment, forecasted transaction, or net investment in a foreign operation. These financial instruments can be designated as:

• Hedges of the change in the fair value of a recognized fixed-rate asset or liability, or the firm commitment to acquire such an asset or liability (a fair value hedge); for these hedges, the gain or loss from the derivative financial instrument, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in income during the period of change in fair value.

• Hedges of the variable cash flows of a recognized variable-rate asset or liability, or the forecasted acquisition of such an asset or liability (a cash flow hedge); for these hedges, the gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive income and reclassified to income in the same period when the gain or loss on the hedged item is included in income.

• Hedges of the currency exposure related to a net investment in a foreign operation (a net investment hedge); for these hedges, the gain or loss from the derivative financial instrument is recognized in Accumulated other comprehensive income and reclassified to income in the same period when the gain or loss related to the net investment in the foreign operation is included in income.

The gain or loss from a derivative financial instrument designated as a hedge is classified in the same line of the Consolidated Statements of Income as the offsetting loss or gain on the hedged item. The cash flows resulting from these financial instruments are classified in operating activities on the Condensed Consolidated Statements of Cash Flows.

For derivatives that are not designated as a hedge, any gain or loss is immediately recognized in income. The majority of derivatives used in this manner relate to risks resulting from assets or liabilities denominated in a foreign currency and certain commodity contracts that arise in the normal course of business.

Eaton uses certain of its debt denominated in foreign currency to hedge portions of its net investments in foreign operations against foreign currency exposure (net investment hedges). Foreign currency denominated debt designated as a non-derivative net investment hedging instrument had a carrying value on a pre-tax basis of $1,788 at September 30, 2019 and $623 at December 31, 2018.

Derivative Financial Statement Impacts

The fair value of derivative financial instruments recognized in the Consolidated Balance Sheets follows:

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
September 30, 2019
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	2,225	$	—	$	71	$	—	$	—	Fair value	15 months to 16 years
Forward starting floating-to-fixed  interest rate swaps	500		—		1		—		77		Cash flow	14 to 34 years
Currency exchange contracts	1,104		11		—		17		14		Cash flow	1 to 36 months
Commodity contracts	11		—		—		—		—		Cash flow	1 to 7 months
Total			$	11	$	72	$	17	$	91
Derivatives not designated as  hedges
Currency exchange contracts	$	4,364	$	14			$	41				1 to 12 months
Total			$	14			$	41
December 31, 2018
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	2,550	$	—	$	22	$	1	$	26	Fair value	3 months to 16 years
Forward starting floating-to-fixed  interest rate swaps	100		—		—		—		3		Cash flow	34 years
Currency exchange contracts	951		19		2		11		8		Cash flow	1 to 36 months
Total			$	19	$	24	$	12	$	37
Derivatives not designated as  hedges
Currency exchange contracts	$	3,886	$	40			$	20				1 to 12 months
Total			$	40			$	20

The currency exchange contracts shown in the table above as derivatives not designated as hedges are primarily contracts entered into to manage currency volatility or exposure on intercompany receivables, payables and loans. While Eaton does not elect hedge accounting treatment for these derivatives, Eaton targets managing 100% of the intercompany balance sheet exposure to minimize the effect of currency volatility related to the movement of goods and services in the normal course of its operations. This activity represents the great majority of these currency exchange contracts.

As of September 30, 2019, the volume of outstanding commodity contracts that were entered into to hedge forecasted transactions:

	September 30, 2019
Commodity	(millions of pounds)	Term
Copper	4	1 to 7 months

The following amounts were recorded on the Consolidated Balance Sheets related to fixed-to-floating interest rate swaps:

	Carrying amount of the hedged assets (liabilities)			Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged asset (liabilities) (a)
Location on Consolidated Balance Sheets	September 30, 2019			September 30, 2019
Long-term debt	$	(2,838	)	$	(112	)

^(a) At September 30, 2019, these amounts include the cumulative liability amount of fair value hedging adjustments remaining for which the hedge accounting has been discontinued of $41.

The impact of hedging activities to the Consolidated Statements of Income are as follow:

	Three months ended September 30, 2019
	Net Sales			Cost of products sold			Interest expense - net
Amounts from Consolidated Statements of Income	$	5,314		$	3,512		$	54
Gain (loss) on derivatives designated as cash flow hedges
Currency exchange contracts
Hedged item	$	1		$	(1	)	$	—
Derivative designated as hedging instrument	(1		)	1			—
Commodity contracts
Hedged item	$	—		$	—		$	—
Derivative designated as hedging instrument	—			—			—
Gain (loss) on derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps
Hedged item	$	—		$	—		$	(13	)
Derivative designated as hedging instrument	—			—			13

	Nine months ended September 30, 2019
	Net Sales			Cost of products sold			Interest expense - net
Amounts from Consolidated Statements of Income	$	16,152		$	10,782		$	183
Gain (loss) on derivatives designated as cash flow hedges
Currency exchange contracts
Hedged item	$	6		$	(10	)	$	—
Derivative designated as hedging instrument	(6		)	10			—
Commodity contracts
Hedged item	$	—		$	—		$	—
Derivative designated as hedging instrument	—			—			—
Gain (loss) on derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps
Hedged item	$	—		$	—		$	(76	)
Derivative designated as hedging instrument	—			—			76

The impact of derivatives not designated as hedges to the Consolidated Statements of Income are as follow:

	Gain (loss) recognized in Consolidated Statements of Income			Consolidated Statements of Income classification
	Three months ended September 30
	2019
Gain (loss) on derivatives not designated as hedges
Currency exchange contracts	$	(40	)	Other expense - net
Commodity Contracts	1			Cost of products sold
Total	$	(39	)
	Gain (loss) recognized in Consolidated Statements of Income			Consolidated Statements of Income classification
	Nine months ended September 30
	2019
Gain (loss) on derivatives not designated as hedges
Currency exchange contracts	$	8		Other income - net
Commodity Contracts	1			Cost of products sold
Total	$	9

The impact of derivative and non-derivative instruments designated as hedges to the Consolidated Statements of Income and Comprehensive Income follow:

	Gain (loss) recognized in other comprehensive (loss) income						Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Three months ended September 30							Three months ended September 30
	2019			2018				2019		2018
Derivatives designated as    cash flow hedges
Forward starting floating-to-fixed  interest rate swaps	$	(46	)	$	—		Interest expense - net	$	—	$	—
Currency exchange contracts	(8		)	(12		)	Net sales and Cost of products sold	—		(4		)
Commodity contracts	—			—			Cost of products sold	—		—
Non-derivative designated as net    investment hedges
Foreign currency denominated debt	3			5			Other income - net	—		—
Total	$	(51	)	$	(7	)		$	—	$	(4	)
	Gain (loss) recognized in other comprehensive (loss) income						Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Nine months ended September 30							Nine months ended September 30
	2019			2018				2019		2018
Derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps	$	(73	)	$	—		Interest expense - net	$	—	$	—
Currency exchange contracts	(18		)	(14		)	Net sales and Cost of products sold	4		(12		)
Commodity contracts	—			—			Cost of products sold	—		—
Non-derivative designated as net    investment hedges
Foreign currency denominated debt	15			22			Other income - net	—		—
Total	$	(76	)	$	8			$	4	$	(12	)

At September 30, 2019 and September 30, 2018, losses of $5 and $9, respectively, of estimated unrealized net gains or losses associated with our cash flow hedges were expected to be reclassified to income from Accumulated other comprehensive loss within the next twelve months. These reclassifications relate to our designated foreign currency and commodity hedges that will mature in the next 12 months.

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INVENTORY (Tables)

9 Months Ended

Sep. 30, 2019

Inventory Disclosure [Abstract]

Components of Inventory

The components of inventory follow:

	September 30, 2019		December 31, 2018
Raw materials	$	1,094	$	1,077
Work-in-process	578		500
Finished goods	1,229		1,208
Total inventory	$	2,901	$	2,785

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ACQUISITION AND DIVESTITURE OF BUSINESSES (Details) - USD ($) $ in Millions			1 Months Ended	12 Months Ended
	Jul. 22, 2019	Apr. 15, 2019	Jul. 31, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Oct. 15, 2019
Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S.
Business Acquisition [Line Items]
Business Acquisition, Percentage of Interests Acquired		82.275%	93.70%
Business Acquisition, Pro Forma Revenue						$ 126
Payments to Acquire Businesses, Gross		$ 214
Business Combination, Consideration Transferred			$ 33
Innovative Switchgear Solutions, Inc. (ISG)
Business Acquisition [Line Items]
Business Acquisition, Pro Forma Revenue					$ 18
Souriau-Sunbank Connection Technologies
Business Acquisition [Line Items]
Business Acquisition, Pro Forma Revenue				$ 363
Business Combination, Consideration to be Transferred	$ 920
Lighting Business
Business Acquisition [Line Items]
Sales					$ 1,700
Lighting Business | Subsequent Event
Business Acquisition [Line Items]
Cash purchase price							$ 1,400

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EQUITY (Tables)

9 Months Ended

Sep. 30, 2019

Stockholders' Equity Note [Abstract]

Changes in Shareholders' equity

The changes in Shareholders’ equity follow:

	Ordinary shares				Capital in excess of par value			Retained earnings			Accumulated other comprehensive loss			Shares held in trust			Total Eaton shareholders' equity			Noncontrolling interests			Total equity
(In millions)	Shares		Dollars
Balance at December 31, 2018	423.6		$	4	$	12,090		$	8,161		$	(4,145	)	$	(3	)	$	16,107		$	35		$	16,142
Net income	—		—		—			522			—			—			522			—			522
Other comprehensive income, net of tax											67						67			—			67
Cash dividends paid and accrued	—		—		—			(309		)	—			—			(309		)	(1		)	(310		)
Issuance of shares under equity-based compensation plans	1.4		—		(5		)	1			—			—			(4		)	—			(4		)
Repurchase of shares	(1.9	)	—		—			(150		)	—			—			(150		)	—			(150		)
Balance at March 31, 2019	423.1		$	4	$	12,085		$	8,225		$	(4,078	)	$	(3	)	$	16,233		$	34		$	16,267
Net income	—		—		—			636			—			—			636			—			636
Other comprehensive loss, net of tax											(30		)				(30		)				(30		)
Cash dividends paid	—		—		—			(300		)	—			—			(300		)	(1		)	(301		)
Issuance of shares under equity-based compensation plans	0.1		—		27			(1		)	—			1			27			—			27
Acquisition of a business	—		—		—			—			—			—			—			51			51
Acquisition of noncontrolling interest obtained through tender offer	—		—		—			—			—			—			—			(29		)	(29		)
Repurchase of Shares	(3.2	)	—		—			(260		)	—			—			(260		)	—			(260		)
Balance at June 30, 2019	420.0		$	4	$	12,112		$	8,300		$	(4,108	)	$	(2	)	$	16,306		$	55		$	16,361
Net income	—		—		—			601			—			—			601			1			602
Other comprehensive loss, net of tax											(259		)				(259		)				(259		)
Cash dividends paid	—		—		—			(298		)	—			—			(298		)	—			(298		)
Issuance of shares under equity-based compensation plans	0.2		—		39			(2		)	—			—			37			—			37
Acquisition of noncontrolling interest obtained through tender offer	—		—		—			—			—			—			—			(4		)	(4		)
Repurchase of Shares	(6.8	)	—		—			(539		)	—			—			(539		)	—			(539		)
Balance at September 30, 2019	413.4		$	4	$	12,151		$	8,062		$	(4,367	)	$	(2	)	$	15,848		$	52		$	15,900

	Ordinary shares				Capital in excess of par value		Retained earnings			Accumulated other comprehensive loss			Shares held in trust			Total Eaton shareholders' equity			Noncontrolling interests			Total equity
(In millions)	Shares		Dollars
Balance at December 31, 2017	439.9		$	4	$	11,987	$	8,669		$	(3,404	)	$	(3	)	$	17,253		$	37		$	17,290
Cumulative-effect adjustment upon adoption of ASU 2014-09	—		—		—		(2		)	—			—			(2		)	—			(2		)
Cumulative-effect adjustment upon adoption of ASU 2016-16	—		—		—		(199		)	—			—			(199		)	—			(199		)
Net income	—		—		—		488			—			—			488			(1		)	487
Other comprehensive income, net of tax										296						296			—			296
Cash dividends paid and accrued	—		—		—		(290		)	—			—			(290		)	—			(290		)
Issuance of shares under equity-based compensation plans	1.1		—		18		(1		)	—			—			17			—			17
Changes in noncontrolling interest of consolidated subsidiaries - net	—		—		—		—			—			—			—			2			2
Repurchase of shares	(3.7	)	—		—		(300		)	—			—			(300		)	—			(300		)
Balance at March 31, 2018	437.3		$	4	$	12,005	$	8,365		$	(3,108	)	$	(3	)	$	17,263		$	38		$	17,301
Net income	—		—		—		610			—			—			610			1			611
Other comprehensive loss, net of tax	—									(624		)				(624		)				(624		)
Cash dividends paid	—		—		—		(288		)	—			—			(288		)	(1		)	(289		)
Issuance of shares under equity-based compensation plans	—		—		28		—			—			1			29			—			29
Changes in noncontrolling interest of consolidated subsidiaries - net	—		—		—		—			—			—			—			(3		)	(3		)
Repurchase of Shares	(4.0	)	—		—		(300		)	—			—			(300		)	—			(300		)
Balance at June 30, 2018	433.3		$	4	$	12,033	$	8,387		$	(3,732	)	$	(2	)	$	16,690		$	35		$	16,725
Net income	—		—		—		416			—			—			416			—			416
Other comprehensive loss, net of tax										(98		)	—			(98		)	—			(98		)
Cash dividends paid	—		—		—		(286		)	—			—			(286		)	—			(286		)
Issuance of shares under equity-based compensation plans	0.1		—		33		—			—			(1		)	32			—			32
Balance at September 30, 2018	433.4		$	4	$	12,066	$	8,517		$	(3,830	)	$	(3	)	$	16,754		$	35		$	16,789

Schedule of Accumulated Other Comprehensive Loss

The changes in Accumulated other comprehensive loss follow:

	Currency translation and related hedging instruments			Pensions and other postretirement benefits			Cash flow hedges			Total
Balance at December 31, 2018	$	(2,864	)	$	(1,278	)	$	(3	)	$	(4,145	)
Other comprehensive (loss) income    before reclassifications	(235		)	7			(72		)	(300		)
Amounts reclassified from Accumulated other    comprehensive loss	—			81			(3		)	78
Net current-period Other comprehensive    (loss) income	(235		)	88			(75		)	(222		)
Balance at September 30, 2019	$	(3,099	)	$	(1,190	)	$	(78	)	$	(4,367	)

Reclassification Out of Accumulated Other Comprehensive Loss

The reclassifications out of Accumulated other comprehensive loss follow:

	Nine months ended September 30, 2019				Consolidated statements of income classification
Amortization of defined benefit pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(104	)	1
Tax benefit	23
Total, net of tax	(81		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	4				Net sales and Cost of products sold
Tax expense	(1		)
Total, net of tax	3
Total reclassifications for the period	$	(78	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 8 for additional information about pension and other postretirement benefits items.

Calculation of Net Income Per Ordinary Share Attributable to Shareholders

A summary of the calculation of net income per share attributable to Eaton ordinary shareholders follows:

	Three months ended September 30				Nine months ended September 30
(Shares in millions)	2019		2018		2019		2018
Net income attributable to Eaton ordinary shareholders	$	601	$	416	$	1,759	$	1,514
Weighted-average number of ordinary shares outstanding - diluted	418.4		436.3		422.5		438.4
Less dilutive effect of equity-based compensation	1.8		2.8		1.8		2.6
Weighted-average number of ordinary shares outstanding - basic	416.6		433.5		420.7		435.8
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.44	$	0.95	$	4.16	$	3.45
Basic	1.44		0.96		4.18		3.47

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REVENUE RECOGNITION (Tables)

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Sales

The Company’s six operating segments and the following tables disaggregate sales by lines of businesses, geographic destination, market channel or end market.

	Three months ended September 30, 2019
Net sales	United States		Rest of World		Total
Electrical Products	$	1,073	$	713	$	1,786
Electrical Systems and Services	1,034		538		1,572
Hydraulics	267		336		603
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	298	$	215	513
	Commercial		Passenger and Light Duty
Vehicle	$	371	$	390	761
eMobility					79
Total					$	5,314

	Three months ended September 30, 2018
Net sales	United States		Rest of World		Total
Electrical Products	$	1,055	$	734	$	1,789
Electrical Systems and Services	1,000		519		1,519
Hydraulics	301		369		670
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	269	$	209	478
	Commercial		Passenger and Light Duty
Vehicle	$	451	$	425	876
eMobility					80
Total					$	5,412

	Nine months ended September 30, 2019
Net sales	United States		Rest of World		Total
Electrical Products	$	3,235	$	2,160	$	5,395
Electrical Systems and Services	3,059		1,559		4,618
Hydraulics	863		1,124		1,987
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	884	$	648	1,532
	Commercial		Passenger and Light Duty
Vehicle	$	1,227	$	1,147	2,374
eMobility					246
Total					$	16,152

	Nine months ended September 30, 2018
Net sales	United States		Rest of World		Total
Electrical Products	$	3,048	$	2,279	$	5,327
Electrical Systems and Services	2,877		1,536		4,413
Hydraulics	907		1,196		2,103
	Original Equipment Manufacturers		Aftermarket, Distribution and End User
Aerospace	$	799	$	600	1,399
	Commercial		Passenger and Light Duty
Vehicle	$	1,333	$	1,335	2,668
eMobility					240
Total					$	16,150

Schedule of Changes in Deferred Revenue Liabilities

Changes in the deferred revenue liabilities are as follows:

	Deferred Revenue
Balance at December 31, 2018	$	248
Customer deposits and billings	680
Revenue recognized in the period	(683		)
Translation	1
Balance at September 30, 2019	$	246

	Deferred Revenue
Balance at January 1, 2018	$	227
Customer deposits and billings	696
Revenue recognized in the period	(676		)
Translation	(6		)
Balance at September 30, 2018	$	241

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BUSINESS SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance. Eaton’s operating segments are Electrical Products, Electrical Systems and Services, Hydraulics, Aerospace, Vehicle, and eMobility. Operating profit includes the operating profit from intersegment sales. For additional information regarding Eaton’s business segments, see Note 16 to the Consolidated Financial Statements contained in the 2018 Form 10-K.

	Three months ended September 30						Nine months ended September 30
	2019			2018			2019			2018
Net sales
Electrical Products	$	1,786		$	1,789		$	5,395		$	5,327
Electrical Systems and Services	1,572			1,519			4,618			4,413
Hydraulics	603			670			1,987			2,103
Aerospace	513			478			1,532			1,399
Vehicle	761			876			2,374			2,668
eMobility	79			80			246			240
Total net sales	$	5,314		$	5,412		$	16,152		$	16,150
Segment operating profit
Electrical Products	$	358		$	343		$	1,050		$	984
Electrical Systems and Services	284			234			751			628
Hydraulics	72			94			232			285
Aerospace	129			105			372			284
Vehicle	139			166			397			464
eMobility	4			10			16			35
Total segment operating profit	986			952			2,818			2,680
Corporate
Amortization of intangible assets	(93		)	(95		)	(280		)	(289		)
Interest expense - net	(54		)	(67		)	(183		)	(205		)
Pension and other postretirement benefits expense	(5		)	(3		)	(7		)	(4		)
Arbitration decision expense	—			(275		)	—			(275		)
Other corporate expense - net	(116		)	(73		)	(289		)	(209		)
Income before income taxes	718			439			2,059			1,698
Income tax expense	116			23			299			184
Net income	602			416			1,760			1,514
Less net income for noncontrolling interests	(1		)	—			(1		)	—
Net income attributable to Eaton ordinary shareholders	$	601		$	416		$	1,759		$	1,514

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	$ 5,314			$ 5,412			$ 16,152	$ 16,150
Cost of products sold	3,512			3,597			10,782	10,841
Selling and administrative expense	885			889			2,709	2,679
Research and development expense	147			138			454	439
Interest expense (income) - net	54			67			183	205
Arbitration decision expense	0			275			0	275
Other (income) expense - net	(2)			7			(35)	13
Equity in loss (earnings) of subsidiaries, net of tax	0			0			0	0
Intercompany expense (income) - net	0			0			0	0
Income before income taxes	718			439			2,059	1,698
Income tax expense (benefit)	116			23			299	184
Net income	602	$ 636	$ 522	416	$ 611	$ 487	1,760	1,514
Less net loss (income) for noncontrolling interests	(1)			0			(1)	0
Net income attributable to Eaton ordinary shareholders	601			416			1,759	1,514
Other comprehensive income (loss)	(259)	$ (30)	$ 67	(98)	$ (624)	$ 296	(222)	(426)
Total comprehensive income attributable to Eaton ordinary shareholders	342			318			1,537	1,088
Guarantors
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,826			1,814			5,548	5,304
Cost of products sold	1,301			1,320			3,967	3,845
Selling and administrative expense	199			197			609	575
Research and development expense	35			37			110	113
Interest expense (income) - net	5			3			14	11
Arbitration decision expense				275				275
Other (income) expense - net	2			4			(20)	31
Equity in loss (earnings) of subsidiaries, net of tax	(797)			(892)			(2,359)	(2,588)
Intercompany expense (income) - net	513			579			1,386	1,623
Income before income taxes	568			291			1,841	1,419
Income tax expense (benefit)	(27)			(91)			(62)	(119)
Net income	595			382			1,903	1,538
Less net loss (income) for noncontrolling interests	0			0			0	0
Net income attributable to Eaton ordinary shareholders	595			382			1,903	1,538
Other comprehensive income (loss)	(268)			(94)			(215)	(394)
Total comprehensive income attributable to Eaton ordinary shareholders	327			288			1,688	1,144
Other subsidiaries
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	2,996			3,134			9,168	9,567
Cost of products sold	2,127			2,202			6,552	6,824
Selling and administrative expense	316			333			1,003	1,003
Research and development expense	75			68			231	217
Interest expense (income) - net	(10)			(4)			(23)	(11)
Arbitration decision expense				0				0
Other (income) expense - net	(8)			(5)			(4)	(21)
Equity in loss (earnings) of subsidiaries, net of tax	(677)			(433)			(2,072)	(1,716)
Intercompany expense (income) - net	(470)			(626)			(1,368)	(1,689)
Income before income taxes	1,643			1,599			4,849	4,960
Income tax expense (benefit)	139			124			343	327
Net income	1,504			1,475			4,506	4,633
Less net loss (income) for noncontrolling interests	(1)			0			(1)	0
Net income attributable to Eaton ordinary shareholders	1,503			1,475			4,505	4,633
Other comprehensive income (loss)	(705)			(240)			(612)	(1,012)
Total comprehensive income attributable to Eaton ordinary shareholders	798			1,235			3,893	3,621
Consolidating adjustments
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	(1,252)			(1,344)			(3,890)	(4,027)
Cost of products sold	(1,255)			(1,344)			(3,887)	(4,026)
Selling and administrative expense	0			0			0	0
Research and development expense	0			0			0	0
Interest expense (income) - net	0			0			(2)	2
Arbitration decision expense				0				0
Other (income) expense - net	0			0			0	0
Equity in loss (earnings) of subsidiaries, net of tax	2,302			1,946			6,915	6,463
Intercompany expense (income) - net	0			0			0	0
Income before income taxes	(2,299)			(1,946)			(6,916)	(6,466)
Income tax expense (benefit)	1			0			0	(1)
Net income	(2,300)			(1,946)			(6,916)	(6,465)
Less net loss (income) for noncontrolling interests	0			0			0	0
Net income attributable to Eaton ordinary shareholders	(2,300)			(1,946)			(6,916)	(6,465)
Other comprehensive income (loss)	999			356			849	1,443
Total comprehensive income attributable to Eaton ordinary shareholders	(1,301)			(1,590)			(6,067)	(5,022)
Eaton Corporation plc
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	0			0			0	0
Cost of products sold	0			0			0	0
Selling and administrative expense	2			3			8	8
Research and development expense	0			0			0	0
Interest expense (income) - net	0			0			0	0
Arbitration decision expense				0				0
Other (income) expense - net	1			(3)			(12)	(22)
Equity in loss (earnings) of subsidiaries, net of tax	(611)			(430)			(1,785)	(1,531)
Intercompany expense (income) - net	7			14			30	31
Income before income taxes	601			416			1,759	1,514
Income tax expense (benefit)	0			0			0	0
Net income	601			416			1,759	1,514
Less net loss (income) for noncontrolling interests	0			0			0	0
Net income attributable to Eaton ordinary shareholders	601			416			1,759	1,514
Other comprehensive income (loss)	(259)			(98)			(222)	(426)
Total comprehensive income attributable to Eaton ordinary shareholders	342			318			1,537	1,088
Eaton Corporation
Consolidating Statements of Comprehensive Income, Captions [Line Items]
Net sales	1,744			1,808			5,326	5,306
Cost of products sold	1,339			1,419			4,150	4,198
Selling and administrative expense	368			356			1,089	1,093
Research and development expense	37			33			113	109
Interest expense (income) - net	59			68			194	203
Arbitration decision expense				0				0
Other (income) expense - net	3			11			1	25
Equity in loss (earnings) of subsidiaries, net of tax	(217)			(191)			(699)	(628)
Intercompany expense (income) - net	(50)			33			(48)	35
Income before income taxes	205			79			526	271
Income tax expense (benefit)	3			(10)			18	(23)
Net income	202			89			508	294
Less net loss (income) for noncontrolling interests	0			0			0	0
Net income attributable to Eaton ordinary shareholders	202			89			508	294
Other comprehensive income (loss)	(26)			(22)			(22)	(37)
Total comprehensive income attributable to Eaton ordinary shareholders	$ 176			$ 67			$ 486	$ 257

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Cash flow hedge gain (loss) to be reclassified within the next twelve months			$ 5	$ (9)
Interest expense - net | Forward starting floating-to-fixed interest rate swaps | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	$ (46)	$ 0	(73)	0
Gain (loss) reclassified from Accumulated other comprehensive loss	0	0	0	0
Net sales and Cost of products sold [Member] | Currency exchange contracts | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	(8)	(12)	(18)	(14)
Gain (loss) reclassified from Accumulated other comprehensive loss	0	(4)	4	(12)
Cost of products sold | Commodity contracts | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	0	0	0	0
Gain (loss) reclassified from Accumulated other comprehensive loss	0	0	0	0
Other income (expense) - net | Net Investment Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive (loss) income	3	5	15	22
Gain (loss) reclassified from Accumulated other comprehensive loss	0	0	0	0
Total | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Total, gain (loss) on derivative and net investment hedge recognized in other comprehensive (loss) income	(51)	(7)	(76)	8
Total, gain (loss) on derivative and net investment hedge recognized in accumulated other comprehensive (loss) income	$ 0	$ (4)	$ 4	$ (12)

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 602	$ 416	$ 1,760	$ 1,514
Less net loss (income) for noncontrolling interests	(1)	0	(1)	0
Net income attributable to Eaton ordinary shareholders	601	416	1,759	1,514
Other comprehensive (loss) income, net of tax
Currency translation and related hedging instruments	(252)	(132)	(235)	(546)
Pensions and other postretirement benefits	35	40	88	122
Cash flow hedges	(42)	(6)	(75)	(2)
Other comprehensive loss attributable to Eaton ordinary shareholders	(259)	(98)	(222)	(426)
Total comprehensive income attributable to Eaton ordinary shareholders	$ 342	$ 318	$ 1,537	$ 1,088

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BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of Eaton Corporation plc (Eaton or the Company) have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles (US GAAP) for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are necessary for a fair presentation of the condensed consolidated financial statements for the interim periods.

This Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in Eaton’s 2018 Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. Management has evaluated subsequent events through the date this Form 10-Q was filed with the Securities and Exchange Commission.

Leases

The Company determines if an arrangement is a lease at inception. Operating lease assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. As most leases do not provide an implicit interest rate, Eaton uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The length of a lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options. The Company made an accounting policy election to not recognize lease assets or liabilities for leases with a term of 12 months or less. Additionally, when accounting for leases, the Company combines payments for leased assets, related services and other components of a lease.

Adoption of New Accounting Standards

Eaton adopted Accounting Standard Update 2016-02, Leases (Topic 842), and related amendments, in the first quarter of 2019 using the optional transition method and has not restated prior periods. The Company elected to use the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the carry forward of historical lease classification of existing leases. The Company recorded a cumulative-effect adjustment of less than $1 to retained earnings as of January 1, 2019. Additionally, the adoption of the new standard resulted in the recording of lease assets and lease liabilities for operating leases of $435 and $446, respectively, as of January 1, 2019. The adoption of the standard did not have a material impact to the Consolidated Statements of Income or Cash Flows.

Eaton adopted Accounting Standard Update 2017-12, Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities, in the first quarter 2019 using the modified retrospective approach for hedge instruments that existed at the date of adoption. ASU 2017-12 is intended to better align the Company's risk management activities with financial reporting for hedging relationships. The standard eliminates the requirement to separately measure and report hedge ineffectiveness, expands the ability to hedge specific risk components, and generally requires the change in value of the hedge instrument and hedged item to be presented in the same income statement line. The new disclosure requirements were applied on a prospective basis and comparative information has not been restated. The adoption of the standard did not have a material impact on the consolidated financial statements.

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REVENUE RECOGNITION - Schedule of Changes in Deferred Revenue Liabilities (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Movement in Deferred Revenue [Roll Forward]
Beginning balance	$ 248	$ 227
Customer deposits and billings	680	696
Revenue recognized in the period	(683)	(676)
Translation	1	(6)
Ending balance	$ 246	$ 241

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LEASES - Supplemental Cash Flow Information Related To Leases (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows - payments on operating leases	$ (118)
Operating cash outflows - interest payments on finance leases	(1)
Financing cash outflows - payments on finance lease obligations	(3)
Lease assets obtained in exchange for new lease obligations:
Operating leases	95
Finance leases	$ 17

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DEBT (Details) - May 14, 2019 € in Millions, $ in Millions	EUR (€)	USD ($)	USD ($)
Debt Instrument [Line Items]
Debt Instrument, Face Amount	€ 1,100		$ 1,232
Proceeds from Issuance of Debt	1,097	$ 1,229
Tranche One
Debt Instrument [Line Items]
Debt Instrument, Face Amount	€ 600
Debt Instrument, Interest Rate, Stated Percentage	0.02%		0.02%
Tranche Two
Debt Instrument [Line Items]
Debt Instrument, Face Amount	€ 500
Debt Instrument, Interest Rate, Stated Percentage	0.70%		0.70%

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Volume of Outstanding Commodity Contracts (Details) - Commodity contracts lb in Millions	9 Months Ended
	Sep. 30, 2019 lb
Derivative [Line Items]
Derivative, outstanding commodity contract	4
Minimum
Derivative [Line Items]
Derivative, term of contract	1 month
Maximum
Derivative [Line Items]
Derivative, term of contract	7 months

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EQUITY - Calculation of Net Income per Ordinary Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Calculation of net income per ordinary share attributable to ordinary shareholders
Net Income Attributable to Eaton ordinary shareholders	$ 601	$ 416	$ 1,759	$ 1,514
Weighted-average number of ordinary shares outstanding - diluted (shares)	418.4	436.3	422.5	438.4
Less dilutive effect of equity-based compensation (shares)	1.8	2.8	1.8	2.6
Weighted-average number of ordinary shares outstanding - basic (shares)	416.6	433.5	420.7	435.8
Net income per share attributable to Eaton ordinary shareholders
Diluted (usd per share)	$ 1.44	$ 0.95	$ 4.16	$ 3.45
Basic (usd per share)	$ 1.44	$ 0.96	$ 4.18	$ 3.47
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0.8	0.5	1.1	0.4

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INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Contingency [Line Items]
Income tax rate, percent	16.00%	5.20%	14.50%	10.80%
Income tax expense	$ 116	$ 23	$ 299	$ 184
Pneumo Abex Case
Income Tax Contingency [Line Items]
Income tax expense		$ (69)

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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Summary of Financial Instruments Recognized at Fair Value and Fair Value Measurement Used

A summary of financial instruments recognized at fair value, and the fair value measurements used, follows:

	Total			Level 1		Level 2			Level 3
September 30, 2019
Cash	$	549		$	549	$	—		$	—
Short-term investments	281			281		—			—
Net derivative contracts	(52		)	—		(52		)	—
December 31, 2018
Cash	$	283		$	283	$	—		$	—
Short-term investments	157			157		—			—
Net derivative contracts	14			—		14			—

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

9 Months Ended

Sep. 30, 2019

Condensed Financial Information Disclosure [Abstract]

Condensed Consolidating Financial Statements

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,744		$	1,826		$	2,996		$	(1,252	)	$	5,314
Cost of products sold	—			1,339			1,301			2,127			(1,255		)	3,512
Selling and administrative expense	2			368			199			316			—			885
Research and development expense	—			37			35			75			—			147
Interest expense (income) - net	—			59			5			(10		)	—			54
Other expense (income) - net	1			3			2			(8		)	—			(2		)
Equity in loss (earnings) of    subsidiaries, net of tax	(611		)	(217		)	(797		)	(677		)	2,302			—
Intercompany expense (income) - net	7			(50		)	513			(470		)	—			—
Income (loss) before income taxes	601			205			568			1,643			(2,299		)	718
Income tax expense (benefit)	—			3			(27		)	139			1			116
Net income (loss)	601			202			595			1,504			(2,300		)	602
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	601		$	202		$	595		$	1,503		$	(2,300	)	$	601
Other comprehensive income (loss)	$	(259	)	$	(26	)	$	(268	)	$	(705	)	$	999		$	(259	)
Total comprehensive income   (loss) attributable to Eaton   ordinary shareholders	$	342		$	176		$	327		$	798		$	(1,301	)	$	342

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	1,808		$	1,814		$	3,134		$	(1,344	)	$	5,412
Cost of products sold	—			1,419			1,320			2,202			(1,344		)	3,597
Selling and administrative expense	3			356			197			333			—			889
Research and development expense	—			33			37			68			—			138
Interest expense (income) - net	—			68			3			(4		)	—			67
Arbitration decision expense	—			—			275			—			—			275
Other expense (income) - net	(3		)	11			4			(5		)	—			7
Equity in loss (earnings) of    subsidiaries, net of tax	(430		)	(191		)	(892		)	(433		)	1,946			—
Intercompany expense (income) - net	14			33			579			(626		)	—			—
Income (loss) before income taxes	416			79			291			1,599			(1,946		)	439
Income tax expense (benefit)	—			(10		)	(91		)	124			—			23
Net income (loss)	416			89			382			1,475			(1,946		)	416
Less net loss (income) for    noncontrolling interests	—			—			—			—			—			—
Net income (loss) attributable to    Eaton ordinary shareholders	$	416		$	89		$	382		$	1,475		$	(1,946	)	$	416
Other comprehensive income (loss)	$	(98	)	$	(22	)	$	(94	)	$	(240	)	$	356		$	(98	)
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	318		$	67		$	288		$	1,235		$	(1,590	)	$	318

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	5,326		$	5,548		$	9,168		$	(3,890	)	$	16,152
Cost of products sold	—			4,150			3,967			6,552			(3,887		)	10,782
Selling and administrative expense	8			1,089			609			1,003			—			2,709
Research and development expense	—			113			110			231			—			454
Interest expense (income) - net	—			194			14			(23		)	(2		)	183
Other expense (income) - net	(12		)	1			(20		)	(4		)	—			(35		)
Equity in loss (earnings) of    subsidiaries, net of tax	(1,785		)	(699		)	(2,359		)	(2,072		)	6,915			—
Intercompany expense (income) - net	30			(48		)	1,386			(1,368		)	—			—
Income (loss) before income taxes	1,759			526			1,841			4,849			(6,916		)	2,059
Income tax expense (benefit)	—			18			(62		)	343			—			299
Net income (loss)	1,759			508			1,903			4,506			(6,916		)	1,760
Less net loss (income) for    noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to    Eaton ordinary shareholders	$	1,759		$	508		$	1,903		$	4,505		$	(6,916	)	$	1,759
Other comprehensive income (loss)	$	(222	)	$	(22	)	$	(215	)	$	(612	)	$	849		$	(222	)
Total comprehensive income    (loss) attributable to Eaton    ordinary shareholders	$	1,537		$	486		$	1,688		$	3,893		$	(6,067	)	$	1,537

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net sales	$	—		$	5,306		$	5,304		$	9,567		$	(4,027	)	$	16,150
Cost of products sold	—			4,198			3,845			6,824			(4,026		)	10,841
Selling and administrative expense	8			1,093			575			1,003			—			2,679
Research and development expense	—			109			113			217			—			439
Interest expense (income) - net	—			203			11			(11		)	2			205
Arbitration decision expense	—			—			275			—			—			275
Other expense (income) - net	(22		)	25			31			(21		)	—			13
Equity in loss (earnings) of    subsidiaries, net of tax	(1,531		)	(628		)	(2,588		)	(1,716		)	6,463			—
Intercompany expense (income) - net	31			35			1,623			(1,689		)	—			—
Income (loss) before income taxes	1,514			271			1,419			4,960			(6,466		)	1,698
Income tax expense (benefit)	—			(23		)	(119		)	327			(1		)	184
Net income (loss)	1,514			294			1,538			4,633			(6,465		)	1,514
Less net loss (income) for    noncontrolling interests	—			—			—			—			—			—
Net income (loss) attributable to    Eaton ordinary shareholders	$	1,514		$	294		$	1,538		$	4,633		$	(6,465	)	$	1,514
Other comprehensive income (loss)	$	(426	)	$	(37	)	$	(394	)	$	(1,012	)	$	1,443		$	(426	)
Total comprehensive income (loss) attributable to Eaton ordinary shareholders	$	1,088		$	257		$	1,144		$	3,621		$	(5,022	)	$	1,088

CONDENSED CONSOLIDATING BALANCE SHEETS SEPTEMBER 30, 2019
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	—	$	222	$	—	$	327	$	—		$	549
Short-term investments	—		—		—		281		—			281
Accounts receivable - net	—		475		1,289		2,023		—			3,787
Intercompany accounts    receivable	9		855		1,957		2,681		(5,502		)	—
Inventory	—		577		857		1,546		(79		)	2,901
Prepaid expenses and    other current assets	—		100		32		347		15			494
Total current assets	9		2,229		4,135		7,205		(5,566		)	8,012
Property, plant and    equipment - net	—		851		669		1,963		—			3,483
Other noncurrent assets
Goodwill	—		1,330		6,705		5,302		—			13,337
Other intangible assets	—		123		2,941		1,593		—			4,657
Operating lease assets	—		159		62		223		—			444
Deferred income taxes	—		351		—		278		(335		)	294
Investment in subsidiaries	16,939		26,627		73,052		27,306		(143,924		)	—
Intercompany loans receivable	9		5,736		7,334		60,233		(73,312		)	—
Other assets	—		778		159		731		—			1,668
Total assets	$	16,957	$	38,184	$	95,057	$	104,834	$	(223,137	)	$	31,895
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	—	$	—	$	2	$	—		$	2
Current portion of    long-term debt	—		4		—		2		—			6
Accounts payable	—		494		508		1,288		—			2,290
Intercompany accounts payable	9		1,355		2,981		1,157		(5,502		)	—
Accrued compensation	—		99		59		263		—			421
Other current liabilities	1		588		269		1,086		(2		)	1,942
Total current liabilities	10		2,540		3,817		3,798		(5,504		)	4,661
Noncurrent liabilities
Long-term debt	—		5,900		2,107		6		—			8,013
Pension liabilities	—		378		127		734		—			1,239
Other postretirement    benefits liabilities	—		167		82		73		—			322
Operating lease liabilities	—		116		47		170		—			333
Deferred income taxes	—		—		458		186		(335		)	309
Intercompany loans payable	1,099		5,272		65,822		1,119		(73,312		)	—
Other noncurrent liabilities	—		454		304		360		—			1,118
Total noncurrent liabilities	1,099		12,287		68,947		2,648		(73,647		)	11,334
Shareholders’ equity
Eaton shareholders' equity	15,848		23,357		22,293		98,336		(143,986		)	15,848
Noncontrolling interests	—		—		—		52		—			52
Total equity	15,848		23,357		22,293		98,388		(143,986		)	15,900
Total liabilities and equity	$	16,957	$	38,184	$	95,057	$	104,834	$	(223,137	)	$	31,895

CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2018
	Eaton Corporation plc		Eaton Corporation		Guarantors		Other subsidiaries		Consolidating adjustments			Total
Assets
Current assets
Cash	$	1	$	21	$	—	$	261	$	—		$	283
Short-term investments	—		—		—		157		—			157
Accounts receivable - net	—		483		1,400		1,975		—			3,858
Intercompany accounts    receivable	—		1,575		1,851		2,968		(6,394		)	—
Inventory	—		540		766		1,555		(76		)	2,785
Prepaid expenses and    other current assets	—		107		32		354		14			507
Total current assets	1		2,726		4,049		7,270		(6,456		)	7,590
Property, plant and    equipment - net	—		843		678		1,946		—			3,467
Other noncurrent assets
Goodwill	—		1,330		6,705		5,293		—			13,328
Other intangible assets	—		128		3,054		1,664		—			4,846
Deferred income taxes	—		340		—		288		(335		)	293
Investment in subsidiaries	16,476		25,956		71,334		25,557		(139,323		)	—
Intercompany loans receivable	1,508		5,912		8,406		59,078		(74,904		)	—
Other assets	—		746		117		705		—			1,568
Total assets	$	17,985	$	37,981	$	94,343	$	101,801	$	(221,018	)	$	31,092
Liabilities and    shareholders’ equity
Current liabilities
Short-term debt	$	—	$	388	$	—	$	26	$	—		$	414
Current portion of    long-term debt	—		338		—		1		—			339
Accounts payable	—		476		416		1,238		—			2,130
Intercompany accounts payable	32		1,127		3,206		2,029		(6,394		)	—
Accrued compensation	—		135		71		251		—			457
Other current liabilities	30		525		259		1,002		(2		)	1,814
Total current liabilities	62		2,989		3,952		4,547		(6,396		)	5,154
Noncurrent liabilities
Long-term debt	—		5,814		945		7		2			6,768
Pension liabilities	—		383		130		791		—			1,304
Other postretirement    benefits liabilities	—		166		83		72		—			321
Deferred income taxes	—		1		508		175		(335		)	349
Intercompany loans payable	1,816		5,182		66,507		1,399		(74,904		)	—
Other noncurrent liabilities	—		389		291		374		—			1,054
Total noncurrent liabilities	1,816		11,935		68,464		2,818		(75,237		)	9,796
Shareholders’ equity
Eaton shareholders' equity	16,107		23,057		21,927		94,401		(139,385		)	16,107
Noncontrolling interests	—		—		—		35		—			35
Total equity	16,107		23,057		21,927		94,436		(139,385		)	16,142
Total liabilities and equity	$	17,985	$	37,981	$	94,343	$	101,801	$	(221,018	)	$	31,092

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(67	)	$	980		$	415		$	1,186		$	—		$	2,514
Investing activities
Capital expenditures for property,    plant and equipment	—			(74		)	(88		)	(279		)	—			(441		)
Cash paid for acquisitions of businesses, net of cash acquired	—			—			(30		)	(247		)	—			(277		)
Sales (purchases) of short-term investments - net	—			—			—			(132		)	—			(132		)
Loans to affiliates	—			(470		)	(280		)	(5,044		)	5,794			—
Repayments of loans from affiliates	—			663			—			3,156			(3,819		)	—
Proceeds (payments) for settlement of currency exchange contracts not designated as hedges - net	—			—			—			26			—			26
Other - net	—			(21		)	32			(19		)	—			(8		)
Net cash provided by (used in) investing activities	—			98			(366		)	(2,539		)	1,975			(832		)
Financing activities
Proceeds from borrowings	—			—			1,232			—			—			1,232
Payments on borrowings	—			(726		)	—			(31		)	—			(757		)
Proceeds from borrowings from    affiliates	1,927			2,689			428			750			(5,794		)	—
Payments on borrowings from    affiliates	(16		)	(2,781		)	(458		)	(564		)	3,819			—
Other intercompany financing    activities	—			(23		)	(1,239		)	1,262			—			—
Cash dividends paid	(907		)	—			—			—			—			(907		)
Exercise of employee stock options	40			—			—			—			—			40
Repurchase of shares	(978		)	—			—			—			—			(978		)
Employee taxes paid from shares withheld	—			(36		)	(6		)	(3		)	—			(45		)
Other - net	—			—			(6		)	(2		)	—			(8		)
Net cash provided by (used in)    financing activities	66			(877		)	(49		)	1,412			(1,975		)	(1,423		)
Effect of currency on cash	—			—			—			7			—			7
Total increase (decrease) in cash	(1		)	201			—			66			—			266
Cash at the beginning of the period	1			21			—			261			—			283
Cash at the end of the period	$	—		$	222		$	—		$	327		$	—		$	549

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018
	Eaton Corporation plc			Eaton Corporation			Guarantors			Other subsidiaries			Consolidating adjustments			Total
Net cash provided by (used in)    operating activities	$	(11	)	$	(174	)	$	393		$	1,718		$	(88	)	$	1,838
Investing activities
Capital expenditures for property,    plant and equipment	—			(75		)	(74		)	(262		)	—			(411		)
Sales (purchases) of short-term investments - net	—			—			—			329			—			329
Investments in affiliates	—			(36		)	—			—			36			—
Loans to affiliates	—			(100		)	(84		)	(4,764		)	4,948			—
Repayments of loans from affiliates	—			647			956			3,893			(5,496		)	—
Proceeds (payments) for settlement of currency exchange contracts not designated as hedges - net	—			11			—			(133		)	—			(122		)
Other - net	—			(26		)	3			(29		)	—			(52		)
Net cash provided by (used in)    investing activities	—			421			801			(966		)	(512		)	(256		)
Financing activities
Proceeds from borrowings	4			65			—			11			—			80
Payments on borrowings	—			(450		)	(35		)	(1		)	—			(486		)
Proceeds from borrowings from    affiliates	2,671			1,995			183			99			(4,948		)	—
Payments on borrowings from    affiliates	(1,227		)	(2,775		)	(654		)	(840		)	5,496			—
Capital contributions from affiliates	—			—			—			36			(36		)	—
Other intercompany financing activities	—			788			(687		)	(101		)	—			—
Cash dividends paid	(864		)	—			—			—			—			(864		)
Cash dividends paid to affiliates	—			—			—			(88		)	88			—
Exercise of employee stock options	28			—			—			—			—			28
Repurchase of shares	(600		)	—			—			—			—			(600		)
Employee taxes paid from shares withheld	—			(16		)	(5		)	(3		)	—			(24		)
Other - net	—			(1		)	—			(1		)	—			(2		)
Net cash provided by (used in)    financing activities	12			(394		)	(1,198		)	(888		)	600			(1,868		)
Effect of currency on cash	—			—			—			52			—			52
Total increase (decrease) in cash	1			(147		)	(4		)	(84		)	—			(234		)
Cash at the beginning of the period	—			183			18			360			—			561
Cash at the end of the period	$	1		$	36		$	14		$	276		$	—		$	327

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REVENUE RECOGNITION - Narrative (Details) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2019 USD ($) segment	Dec. 31, 2018 USD ($)
Revenue from Contract with Customer [Abstract]
Number of operating segments | segment	6
Accounts receivables from customers	$ 3,384	$ 3,402
Unbilled receivables	104	94
Backlog of unsatisfied or partially satisfied obligations	$ 5,400	$ 5,300
Backlog expected to be recognized in the next twelve months (as a percent)	86.00%	87.00%

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EQUITY

9 Months Ended

Sep. 30, 2019

Stockholders' Equity Note [Abstract]

EQUITY

EQUITY

On February 24, 2016, the Board of Directors adopted a share repurchase program for share repurchases up to $2,500 of ordinary shares (2016 Program). During the nine months ended September 30, 2018, 7.7 million ordinary shares were repurchased under the 2016 Program in the open market at a total cost of $600. No ordinary shares were repurchased during the three months ended September 30, 2018. On February 27, 2019, the Board of Directors adopted a new share repurchase program for share repurchases up to $5,000 of ordinary shares (2019 Program). Under the 2019 Program, the ordinary shares are expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During the three and nine months ended September 30, 2019, 6.8 million and 11.9 million ordinary shares, respectively, were repurchased under the 2019 Program in the open market at a total cost of $539 and $949, respectively.

The changes in Shareholders’ equity follow:

	Ordinary shares				Capital in excess of par value			Retained earnings			Accumulated other comprehensive loss			Shares held in trust			Total Eaton shareholders' equity			Noncontrolling interests			Total equity
(In millions)	Shares		Dollars
Balance at December 31, 2018	423.6		$	4	$	12,090		$	8,161		$	(4,145	)	$	(3	)	$	16,107		$	35		$	16,142
Net income	—		—		—			522			—			—			522			—			522
Other comprehensive income, net of tax											67						67			—			67
Cash dividends paid and accrued	—		—		—			(309		)	—			—			(309		)	(1		)	(310		)
Issuance of shares under equity-based compensation plans	1.4		—		(5		)	1			—			—			(4		)	—			(4		)
Repurchase of shares	(1.9	)	—		—			(150		)	—			—			(150		)	—			(150		)
Balance at March 31, 2019	423.1		$	4	$	12,085		$	8,225		$	(4,078	)	$	(3	)	$	16,233		$	34		$	16,267
Net income	—		—		—			636			—			—			636			—			636
Other comprehensive loss, net of tax											(30		)				(30		)				(30		)
Cash dividends paid	—		—		—			(300		)	—			—			(300		)	(1		)	(301		)
Issuance of shares under equity-based compensation plans	0.1		—		27			(1		)	—			1			27			—			27
Acquisition of a business	—		—		—			—			—			—			—			51			51
Acquisition of noncontrolling interest obtained through tender offer	—		—		—			—			—			—			—			(29		)	(29		)
Repurchase of Shares	(3.2	)	—		—			(260		)	—			—			(260		)	—			(260		)
Balance at June 30, 2019	420.0		$	4	$	12,112		$	8,300		$	(4,108	)	$	(2	)	$	16,306		$	55		$	16,361
Net income	—		—		—			601			—			—			601			1			602
Other comprehensive loss, net of tax											(259		)				(259		)				(259		)
Cash dividends paid	—		—		—			(298		)	—			—			(298		)	—			(298		)
Issuance of shares under equity-based compensation plans	0.2		—		39			(2		)	—			—			37			—			37
Acquisition of noncontrolling interest obtained through tender offer	—		—		—			—			—			—			—			(4		)	(4		)
Repurchase of Shares	(6.8	)	—		—			(539		)	—			—			(539		)	—			(539		)
Balance at September 30, 2019	413.4		$	4	$	12,151		$	8,062		$	(4,367	)	$	(2	)	$	15,848		$	52		$	15,900

	Ordinary shares				Capital in excess of par value		Retained earnings			Accumulated other comprehensive loss			Shares held in trust			Total Eaton shareholders' equity			Noncontrolling interests			Total equity
(In millions)	Shares		Dollars
Balance at December 31, 2017	439.9		$	4	$	11,987	$	8,669		$	(3,404	)	$	(3	)	$	17,253		$	37		$	17,290
Cumulative-effect adjustment upon adoption of ASU 2014-09	—		—		—		(2		)	—			—			(2		)	—			(2		)
Cumulative-effect adjustment upon adoption of ASU 2016-16	—		—		—		(199		)	—			—			(199		)	—			(199		)
Net income	—		—		—		488			—			—			488			(1		)	487
Other comprehensive income, net of tax										296						296			—			296
Cash dividends paid and accrued	—		—		—		(290		)	—			—			(290		)	—			(290		)
Issuance of shares under equity-based compensation plans	1.1		—		18		(1		)	—			—			17			—			17
Changes in noncontrolling interest of consolidated subsidiaries - net	—		—		—		—			—			—			—			2			2
Repurchase of shares	(3.7	)	—		—		(300		)	—			—			(300		)	—			(300		)
Balance at March 31, 2018	437.3		$	4	$	12,005	$	8,365		$	(3,108	)	$	(3	)	$	17,263		$	38		$	17,301
Net income	—		—		—		610			—			—			610			1			611
Other comprehensive loss, net of tax	—									(624		)				(624		)				(624		)
Cash dividends paid	—		—		—		(288		)	—			—			(288		)	(1		)	(289		)
Issuance of shares under equity-based compensation plans	—		—		28		—			—			1			29			—			29
Changes in noncontrolling interest of consolidated subsidiaries - net	—		—		—		—			—			—			—			(3		)	(3		)
Repurchase of Shares	(4.0	)	—		—		(300		)	—			—			(300		)	—			(300		)
Balance at June 30, 2018	433.3		$	4	$	12,033	$	8,387		$	(3,732	)	$	(2	)	$	16,690		$	35		$	16,725
Net income	—		—		—		416			—			—			416			—			416
Other comprehensive loss, net of tax										(98		)	—			(98		)	—			(98		)
Cash dividends paid	—		—		—		(286		)	—			—			(286		)	—			(286		)
Issuance of shares under equity-based compensation plans	0.1		—		33		—			—			(1		)	32			—			32
Balance at September 30, 2018	433.4		$	4	$	12,066	$	8,517		$	(3,830	)	$	(3	)	$	16,754		$	35		$	16,789

The changes in Accumulated other comprehensive loss follow:

	Currency translation and related hedging instruments			Pensions and other postretirement benefits			Cash flow hedges			Total
Balance at December 31, 2018	$	(2,864	)	$	(1,278	)	$	(3	)	$	(4,145	)
Other comprehensive (loss) income    before reclassifications	(235		)	7			(72		)	(300		)
Amounts reclassified from Accumulated other    comprehensive loss	—			81			(3		)	78
Net current-period Other comprehensive    (loss) income	(235		)	88			(75		)	(222		)
Balance at September 30, 2019	$	(3,099	)	$	(1,190	)	$	(78	)	$	(4,367	)

The reclassifications out of Accumulated other comprehensive loss follow:

	Nine months ended September 30, 2019				Consolidated statements of income classification
Amortization of defined benefit pensions and other postretirement benefits items
Actuarial loss and prior service cost	$	(104	)	1
Tax benefit	23
Total, net of tax	(81		)
Gains and (losses) on cash flow hedges
Currency exchange contracts	4				Net sales and Cost of products sold
Tax expense	(1		)
Total, net of tax	3
Total reclassifications for the period	$	(78	)

¹ These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 8 for additional information about pension and other postretirement benefits items.

Net Income Per Share Attributable to Eaton Ordinary Shareholders

A summary of the calculation of net income per share attributable to Eaton ordinary shareholders follows:

	Three months ended September 30				Nine months ended September 30
(Shares in millions)	2019		2018		2019		2018
Net income attributable to Eaton ordinary shareholders	$	601	$	416	$	1,759	$	1,514
Weighted-average number of ordinary shares outstanding - diluted	418.4		436.3		422.5		438.4
Less dilutive effect of equity-based compensation	1.8		2.8		1.8		2.6
Weighted-average number of ordinary shares outstanding - basic	416.6		433.5		420.7		435.8
Net income per share attributable to Eaton ordinary shareholders
Diluted	$	1.44	$	0.95	$	4.16	$	3.45
Basic	1.44		0.96		4.18		3.47

For the third quarter and first nine months of 2019, 0.8 million and 1.1 million stock options, respectively, were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive. For the third quarter and first nine months of 2018, 0.5 million and 0.4 million stock options, respectively, were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive.

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DEBT DEBT

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

DEBT

DEBT

On May 14, 2019, a subsidiary of Eaton issued euro denominated notes (2019 Euro Notes) with a face value of €1,100 ($1,232 based on the May 14, 2019 spot rate), in accordance with Regulation S promulgated under the Securities Act of 1933, as amended. The 2019 Euro Notes are comprised of two tranches of €600 and €500, which mature in 2021 and 2025, respectively, with interest payable annually at a respective rate of 0.02% and 0.70%. The issuer received proceeds totaling €1,097 ($1,229 based on the May 14, 2019 spot rate) from the issuance, net of financing costs and discounts. The 2019 Euro Notes are fully and unconditionally guaranteed on an unsubordinated, unsecured basis by Eaton and certain of its direct and indirect subsidiaries. The 2019 Euro Notes contain customary optional redemption and par call provisions. The 2019 Euro Notes also contain a change of control provision which requires the Company to make an offer to purchase all or any part of the 2019 Euro Notes at a purchase price of 101% of the principal amount plus accrued and unpaid interest. The capitalized deferred financing fees are amortized in Interest expense-net over the respective terms of the 2019 Euro Notes. The 2019 Euro Notes are subject to customary non-financial covenants.

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EQUITY - Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Currency exchange contracts		$ 3,512	$ 3,597	$ 10,782	$ 10,841
Income tax expense		$ 116	$ 23	299	$ 184
Total reclassifications for the period				(78)
Gains and (losses) on cash flow hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period				3
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period				(78)
Reclassification out of Accumulated Other Comprehensive Income | Amortization of defined benefit pensions and other postretirement benefits items
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Actuarial loss and prior service cost	[1]			(104)
Income tax expense				23
Total reclassifications for the period				(81)
Currency exchange contracts | Reclassification out of Accumulated Other Comprehensive Income | Gains and (losses) on cash flow hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Currency exchange contracts				4
Income tax expense				(1)
Total reclassifications for the period				$ 3

[1] These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 8 for additional information about pension and other postretirement benefits items.

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LEGAL CONTINGENCIES (Details) - Pneumo Abex Case - USD ($) $ in Millions	Nov. 28, 2018	Aug. 23, 2018	Jul. 11, 2018
Loss Contingencies [Line Items]
Loss Contingency, Damages Sought, Value			$ 347
Amount awarded to other party		$ 293
Payments for Legal Settlements	$ 297

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Financial Instrument Recognized in the Consolidated Balance sheet (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Foreign currency note payable, noncurrent, pre-tax	$ 1,788	$ 623
Derivatives not designated as hedges
Percentage of intercompany balance sheet exposure	100.00%
Other current assets
Derivatives designated as hedges
Derivative asset designated as hedging instrument	$ 11	19
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	14	40
Other noncurrent assets
Derivatives designated as hedges
Derivative asset designated as hedging instrument	72	24
Other current liabilities
Derivatives designated as hedges
Derivative liability designated as hedging instrument	17	12
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	41	20
Other noncurrent liabilities
Derivatives designated as hedges
Derivative liability designated as hedging instrument	91	37
Currency exchange contracts | Other current assets
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, asset, at fair value	14	40
Currency exchange contracts | Other current liabilities
Derivatives not designated as hedges
Derivative instruments not designated as hedging instruments, liability, at fair value	41	20
Derivatives designated as hedges | Fair value hedging | Fixed-to-floating interest rate swaps
Derivatives designated as hedges
Notional amount	2,225	2,550
Derivatives designated as hedges | Fair value hedging | Fixed-to-floating interest rate swaps | Other current assets
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	0
Derivatives designated as hedges | Fair value hedging | Fixed-to-floating interest rate swaps | Other noncurrent assets
Derivatives designated as hedges
Derivative asset designated as hedging instrument	71	22
Derivatives designated as hedges | Fair value hedging | Fixed-to-floating interest rate swaps | Other current liabilities
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	1
Derivatives designated as hedges | Fair value hedging | Fixed-to-floating interest rate swaps | Other noncurrent liabilities
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	26
Derivatives designated as hedges | Cash Flow Hedging | Forward starting floating-to-fixed interest rate swaps
Derivatives designated as hedges
Notional amount	500	100
Derivatives designated as hedges | Cash Flow Hedging | Forward starting floating-to-fixed interest rate swaps | Other current assets
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	0
Derivatives designated as hedges | Cash Flow Hedging | Forward starting floating-to-fixed interest rate swaps | Other noncurrent assets
Derivatives designated as hedges
Derivative asset designated as hedging instrument	1	0
Derivatives designated as hedges | Cash Flow Hedging | Forward starting floating-to-fixed interest rate swaps | Other current liabilities
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0	0
Derivatives designated as hedges | Cash Flow Hedging | Forward starting floating-to-fixed interest rate swaps | Other noncurrent liabilities
Derivatives designated as hedges
Derivative liability designated as hedging instrument	77	3
Derivatives designated as hedges | Cash Flow Hedging | Currency exchange contracts
Derivatives designated as hedges
Notional amount	1,104	951
Derivatives designated as hedges | Cash Flow Hedging | Currency exchange contracts | Other current assets
Derivatives designated as hedges
Derivative asset designated as hedging instrument	11	19
Derivatives designated as hedges | Cash Flow Hedging | Currency exchange contracts | Other noncurrent assets
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0	2
Derivatives designated as hedges | Cash Flow Hedging | Currency exchange contracts | Other current liabilities
Derivatives designated as hedges
Derivative liability designated as hedging instrument	17	11
Derivatives designated as hedges | Cash Flow Hedging | Currency exchange contracts | Other noncurrent liabilities
Derivatives designated as hedges
Derivative liability designated as hedging instrument	14	8
Derivatives designated as hedges | Cash Flow Hedging | Commodity contracts
Derivatives designated as hedges
Notional amount	11
Derivatives designated as hedges | Cash Flow Hedging | Commodity contracts | Other current assets
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0
Derivatives designated as hedges | Cash Flow Hedging | Commodity contracts | Other noncurrent assets
Derivatives designated as hedges
Derivative asset designated as hedging instrument	0
Derivatives designated as hedges | Cash Flow Hedging | Commodity contracts | Other current liabilities
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0
Derivatives designated as hedges | Cash Flow Hedging | Commodity contracts | Other noncurrent liabilities
Derivatives designated as hedges
Derivative liability designated as hedging instrument	0
Derivatives not designated as hedges | Currency exchange contracts
Derivatives designated as hedges
Notional amount	$ 4,364	$ 3,886
Minimum | Commodity contracts
Derivatives, Fair Value [Line Items]
Derivative, term of contract	1 month
Minimum | Derivatives designated as hedges | Fair value hedging | Fixed-to-floating interest rate swaps
Derivatives, Fair Value [Line Items]
Derivative, term of contract	15 months	3 months
Minimum | Derivatives designated as hedges | Cash Flow Hedging | Forward starting floating-to-fixed interest rate swaps
Derivatives, Fair Value [Line Items]
Derivative, remaining maturity	14 years	34 years
Minimum | Derivatives designated as hedges | Cash Flow Hedging | Currency exchange contracts
Derivatives, Fair Value [Line Items]
Derivative, term of contract	1 month	1 month
Minimum | Derivatives designated as hedges | Cash Flow Hedging | Commodity contracts
Derivatives, Fair Value [Line Items]
Derivative, term of contract	1 month
Minimum | Derivatives not designated as hedges | Currency exchange contracts
Derivatives, Fair Value [Line Items]
Derivative, term of contract	1 month	1 month
Maximum | Commodity contracts
Derivatives, Fair Value [Line Items]
Derivative, term of contract	7 months
Maximum | Derivatives designated as hedges | Fair value hedging | Fixed-to-floating interest rate swaps
Derivatives, Fair Value [Line Items]
Derivative, term of contract	16 years	16 years
Maximum | Derivatives designated as hedges | Fair value hedging | Forward starting floating-to-fixed interest rate swaps
Derivatives, Fair Value [Line Items]
Derivative, remaining maturity	34 years	34 years
Maximum | Derivatives designated as hedges | Cash Flow Hedging | Currency exchange contracts
Derivatives, Fair Value [Line Items]
Derivative, term of contract	36 months	36 months
Maximum | Derivatives designated as hedges | Cash Flow Hedging | Commodity contracts
Derivatives, Fair Value [Line Items]
Derivative, term of contract	7 months
Maximum | Derivatives not designated as hedges | Currency exchange contracts
Derivatives, Fair Value [Line Items]
Derivative, term of contract	12 months	12 months

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REVENUE RECOGNITION - Schedule of Disaggregation of Sales (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Net sales	$ 5,314	$ 5,412	$ 16,152	$ 16,150
Electrical Products
Disaggregation of Revenue [Line Items]
Net sales	1,786	1,789	5,395	5,327
Electrical Products | United States
Disaggregation of Revenue [Line Items]
Net sales	1,073	1,055	3,235	3,048
Electrical Products | Rest of World
Disaggregation of Revenue [Line Items]
Net sales	713	734	2,160	2,279
Electrical Systems and Services
Disaggregation of Revenue [Line Items]
Net sales	1,572	1,519	4,618	4,413
Electrical Systems and Services | United States
Disaggregation of Revenue [Line Items]
Net sales	1,034	1,000	3,059	2,877
Electrical Systems and Services | Rest of World
Disaggregation of Revenue [Line Items]
Net sales	538	519	1,559	1,536
Hydraulics
Disaggregation of Revenue [Line Items]
Net sales	603	670	1,987	2,103
Hydraulics | United States
Disaggregation of Revenue [Line Items]
Net sales	267	301	863	907
Hydraulics | Rest of World
Disaggregation of Revenue [Line Items]
Net sales	336	369	1,124	1,196
Aerospace
Disaggregation of Revenue [Line Items]
Net sales	513	478	1,532	1,399
Aerospace | Original Equipment Manufacturers
Disaggregation of Revenue [Line Items]
Net sales	298	269	884	799
Aerospace | Aftermarket, Distribution and End User
Disaggregation of Revenue [Line Items]
Net sales	215	209	648	600
Vehicle
Disaggregation of Revenue [Line Items]
Net sales	761	876	2,374	2,668
Vehicle | Commercial
Disaggregation of Revenue [Line Items]
Net sales	371	451	1,227	1,333
Vehicle | Passenger and Light Duty
Disaggregation of Revenue [Line Items]
Net sales	390	425	1,147	1,335
eMobility
Disaggregation of Revenue [Line Items]
Net sales	$ 79	$ 80	$ 246	$ 240

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments Recognized in Condensed Consolidated Balance Sheet

The fair value of derivative financial instruments recognized in the Consolidated Balance Sheets follows:

	Notional amount		Other  current assets		Other noncurrent assets		Other current liabilities		Other noncurrent liabilities		Type of hedge	Term
September 30, 2019
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	2,225	$	—	$	71	$	—	$	—	Fair value	15 months to 16 years
Forward starting floating-to-fixed  interest rate swaps	500		—		1		—		77		Cash flow	14 to 34 years
Currency exchange contracts	1,104		11		—		17		14		Cash flow	1 to 36 months
Commodity contracts	11		—		—		—		—		Cash flow	1 to 7 months
Total			$	11	$	72	$	17	$	91
Derivatives not designated as  hedges
Currency exchange contracts	$	4,364	$	14			$	41				1 to 12 months
Total			$	14			$	41
December 31, 2018
Derivatives designated as hedges
Fixed-to-floating interest rate  swaps	$	2,550	$	—	$	22	$	1	$	26	Fair value	3 months to 16 years
Forward starting floating-to-fixed  interest rate swaps	100		—		—		—		3		Cash flow	34 years
Currency exchange contracts	951		19		2		11		8		Cash flow	1 to 36 months
Total			$	19	$	24	$	12	$	37
Derivatives not designated as  hedges
Currency exchange contracts	$	3,886	$	40			$	20				1 to 12 months
Total			$	40			$	20

Schedule of Notional Amounts of Outstanding Derivative Positions

As of September 30, 2019, the volume of outstanding commodity contracts that were entered into to hedge forecasted transactions:

	September 30, 2019
Commodity	(millions of pounds)	Term
Copper	4	1 to 7 months

Schedule Of Derivative Instruments Recorded In Balance Sheet

The following amounts were recorded on the Consolidated Balance Sheets related to fixed-to-floating interest rate swaps:

	Carrying amount of the hedged assets (liabilities)			Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged asset (liabilities) (a)
Location on Consolidated Balance Sheets	September 30, 2019			September 30, 2019
Long-term debt	$	(2,838	)	$	(112	)

^(a) At September 30, 2019, these amounts include the cumulative liability amount of fair value hedging adjustments remaining for which the hedge accounting has been discontinued of $41.

Schedule of Impact of Hedging Activities to Consolidated Statement of Income

The impact of hedging activities to the Consolidated Statements of Income are as follow:

	Three months ended September 30, 2019
	Net Sales			Cost of products sold			Interest expense - net
Amounts from Consolidated Statements of Income	$	5,314		$	3,512		$	54
Gain (loss) on derivatives designated as cash flow hedges
Currency exchange contracts
Hedged item	$	1		$	(1	)	$	—
Derivative designated as hedging instrument	(1		)	1			—
Commodity contracts
Hedged item	$	—		$	—		$	—
Derivative designated as hedging instrument	—			—			—
Gain (loss) on derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps
Hedged item	$	—		$	—		$	(13	)
Derivative designated as hedging instrument	—			—			13

	Nine months ended September 30, 2019
	Net Sales			Cost of products sold			Interest expense - net
Amounts from Consolidated Statements of Income	$	16,152		$	10,782		$	183
Gain (loss) on derivatives designated as cash flow hedges
Currency exchange contracts
Hedged item	$	6		$	(10	)	$	—
Derivative designated as hedging instrument	(6		)	10			—
Commodity contracts
Hedged item	$	—		$	—		$	—
Derivative designated as hedging instrument	—			—			—
Gain (loss) on derivatives designated as fair value hedges
Fixed-to-floating interest rate swaps
Hedged item	$	—		$	—		$	(76	)
Derivative designated as hedging instrument	—			—			76

Amounts Recognized in Net Income

The impact of derivatives not designated as hedges to the Consolidated Statements of Income are as follow:

	Gain (loss) recognized in Consolidated Statements of Income			Consolidated Statements of Income classification
	Three months ended September 30
	2019
Gain (loss) on derivatives not designated as hedges
Currency exchange contracts	$	(40	)	Other expense - net
Commodity Contracts	1			Cost of products sold
Total	$	(39	)
	Gain (loss) recognized in Consolidated Statements of Income			Consolidated Statements of Income classification
	Nine months ended September 30
	2019
Gain (loss) on derivatives not designated as hedges
Currency exchange contracts	$	8		Other income - net
Commodity Contracts	1			Cost of products sold
Total	$	9

Amounts Recognized in Accumulated Other Comprehensive Loss

The impact of derivative and non-derivative instruments designated as hedges to the Consolidated Statements of Income and Comprehensive Income follow:

	Gain (loss) recognized in other comprehensive (loss) income						Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Three months ended September 30							Three months ended September 30
	2019			2018				2019		2018
Derivatives designated as    cash flow hedges
Forward starting floating-to-fixed  interest rate swaps	$	(46	)	$	—		Interest expense - net	$	—	$	—
Currency exchange contracts	(8		)	(12		)	Net sales and Cost of products sold	—		(4		)
Commodity contracts	—			—			Cost of products sold	—		—
Non-derivative designated as net    investment hedges
Foreign currency denominated debt	3			5			Other income - net	—		—
Total	$	(51	)	$	(7	)		$	—	$	(4	)
	Gain (loss) recognized in other comprehensive (loss) income						Location of gain (loss) reclassified from Accumulated other comprehensive loss	Gain (loss) reclassified from Accumulated other comprehensive loss
	Nine months ended September 30							Nine months ended September 30
	2019			2018				2019		2018
Derivatives designated as cash flow hedges
Forward starting floating-to-fixed interest rate swaps	$	(73	)	$	—		Interest expense - net	$	—	$	—
Currency exchange contracts	(18		)	(14		)	Net sales and Cost of products sold	4		(12		)
Commodity contracts	—			—			Cost of products sold	—		—
Non-derivative designated as net    investment hedges
Foreign currency denominated debt	15			22			Other income - net	—		—
Total	$	(76	)	$	8			$	4	$	(12	)

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BASIS OF PRESENTATION - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease assets	$ 444		$ 0
Operating Lease Liabilities	$ 457
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative-effect adjustment upon adoption		$ 1
Operating lease assets		435
Operating Lease Liabilities		$ 446

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INCOME TAXES

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective income tax rate for the third quarter and the first nine months of 2019 was expense of 16.0% and 14.5% compared to expense of 5.2% and 10.8% for the third quarter and first nine months of 2018. The increase in the effective tax rate in the third quarter and first nine months of 2019 was primarily due to the inclusion of $69 of tax benefit on the arbitration decision expense recorded during the third quarter of 2018 (discussed in Note 9), as well as greater levels of income in higher tax jurisdictions.

As the Company has previously disclosed, Eaton's United States subsidiaries ("Eaton US") received a Notice in 2014 from the Internal Revenue Service ("IRS") for tax years 2007 through 2010 which included proposed assessments involving two issues: the recognition of income for several of Eaton US's controlled foreign corporations, and transfer pricing adjustments for products manufactured in the Company's facilities in Puerto Rico and the Dominican Republic and sold to affiliated companies located in the United States. The Company believed the proposed assessments were without merit and contested both matters in the United States Tax Court ("Tax Court"). Eaton US and the IRS both moved for partial summary judgment on the controlled foreign corporation income recognition issue. The Tax Court heard oral arguments on the motions in January 2018, following which the Court ordered further briefing, which was completed in March 2018. On February 25, 2019, the Tax Court granted the IRS's motion for partial summary judgment and denied Eaton's. The Company intends to appeal the Tax Court's partial summary judgment decision to the United States Sixth Circuit Court of Appeals. The Company believes that it will be successful on appeal and has not recorded any additional impact of the Tax Court's decision in its consolidated financial statements. As previously disclosed, the transfer pricing issue included in the Notice remains unresolved at this point. The total potential impact of the Tax Court's partial summary judgment decision on the controlled foreign corporation income recognition issue is not estimable until all matters in the open tax years have been resolved.

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LEASES

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

LEASES

LEASES

Eaton leases certain manufacturing facilities, warehouses, distribution centers, office space, vehicles and equipment. Most real estate leases contain renewal options. The exercise of lease renewal options is at the Company's sole discretion. The Company's lease agreements typically do not contain any significant guarantees of asset values at the end of a lease or restrictive covenants. Payments within certain lease agreements are adjusted periodically for changes in an index or rate.

The components of lease expense follows:

	Three months ended September 30, 2019			Nine months ended September 30, 2019
Operating lease cost	$	41		$	119
Finance lease cost:
Amortization of lease assets	1			3
Interest on lease liabilities	—			1
Short-term lease cost	13			40
Variable lease cost	6			17
Sublease income	(1		)	(3		)
Total lease cost	$	60		$	177

The net gain recorded on sale leaseback transactions for the nine months ended September 30, 2019 was $16.

Supplemental cash flow information related to leases follows:

	Nine months ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows - payments on operating leases	$	(118	)
Operating cash outflows - interest payments on finance leases	(1		)
Financing cash outflows - payments on finance lease obligations	(3		)
Lease assets obtained in exchange for new lease obligations:
Operating leases	$	95
Finance leases	17

Supplemental balance sheet information related to leases follows:

	September 30, 2019
Operating Leases
Operating lease assets	$	444
Other current liabilities	124
Operating lease liabilities	333
Total operating lease liabilities	$	457
Finance Leases
Land and buildings	$	16
Machinery and equipment	17
Accumulated depreciation	(14		)
Net property, plant and equipment	$	19
Current portion of long-term debt	$	6
Long-term debt	14
Total finance lease liabilities	$	20
Weighted-average remaining lease term
Operating leases	5.1 years
Finance leases	3.6 years
Weighted-average discount rate
Operating leases	3.6		%
Finance leases	5.9		%

Maturities of lease liabilities at September 30, 2019 follows:

	Operating Leases		Finance Leases
2019	$	40	$	2
2020	137		7
2021	106		6
2022	75		4
2023	50		3
Thereafter	105		1
Total lease payments	$	513	$	23
Less imputed interest	56		3
Total present value of lease liabilities	$	457	$	20

A summary of minimum rental commitments at December 31, 2018 under noncancelable operating leases, which expire at various dates and in most cases contain renewal options, for each of the next five years and thereafter in the aggregate, follow:

	Operating Leases
2019	$	165
2020	133
2021	106
2022	75
2023	53
Thereafter	110
Total lease commitments	$	642

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ACQUISITION, INTEGRATION AND DIVESTITURE CHARGES (Table)

9 Months Ended

Sep. 30, 2019

Acquisition, Integration and Divestiture Charges [Abstract]

Acquisition Integration Charges

Eaton incurs integration charges related to acquired businesses, and transaction and other charges to divest and exit businesses. A summary of these charges follows:

	Three months ended September 30				Nine months ended September 30
	2019		2018		2019		2018
Electrical Products	$	4	$	—	$	6	$	—
Electrical Systems and Services	3		—		4		—
Corporate	32		—		55		—
Total acquisition integration and divestiture charges before income tax	39		—		65		—
Income taxes	4		—		5		—
Total after income taxes	$	35	$	—	$	60	$	—
Per ordinary share - diluted	$	0.08	$	—	$	0.14	$	—

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INVENTORY

9 Months Ended

Sep. 30, 2019

Inventory Disclosure [Abstract]

INVENTORY

INVENTORY

Inventory is carried at lower of cost or net realizable value. The components of inventory follow:

	September 30, 2019		December 31, 2018
Raw materials	$	1,094	$	1,077
Work-in-process	578		500
Finished goods	1,229		1,208
Total inventory	$	2,901	$	2,785

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RETIREMENT BENEFIT PLANS (Tables)

9 Months Ended

Sep. 30, 2019

Retirement Benefits [Abstract]

Retirement Benefits Plans Expense

The components of retirement benefits expense follow:

	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Three months ended September 30
	2019			2018			2019			2018			2019			2018
Service cost	$	22		$	25		$	14		$	16		$	—		$	1
Interest cost	35			30			13			13			3			3
Expected return on plan assets	(59		)	(63		)	(25		)	(27		)	—			—
Amortization	15			24			10			9			(3		)	(4		)
	13			16			12			11			—			—
Settlements, curtailments and special termination benefits	13			13			2			1			—			—
Total expense	$	26		$	29		$	14		$	12		$	—		$	—
	United States pension benefit expense						Non-United States pension benefit expense						Other postretirement benefits expense
	Nine months ended September 30
	2019			2018			2019			2018			2019			2018
Service cost	$	68		$	75		$	43		$	48		$	1		$	2
Interest cost	103			91			42			40			10			10
Expected return on plan assets	(176		)	(190		)	(79		)	(80		)	(1		)	(2		)
Amortization	46			71			29			29			(10		)	(10		)
	41			47			35			37			—			—
Settlements, curtailments and special termination benefits	36			38			3			1			—			—
Total expense	$	77		$	85		$	38		$	38		$	—		$	—

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CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Net sales	$ 5,314	$ 5,412	$ 16,152	$ 16,150
Cost of products sold	3,512	3,597	10,782	10,841
Selling and administrative expense	885	889	2,709	2,679
Research and development expense	147	138	454	439
Interest expense - net	54	67	183	205
Arbitration decision expense	0	275	0	275
Other (income) expense - net	(2)	7	(35)	13
Income before income taxes	718	439	2,059	1,698
Income tax expense	116	23	299	184
Net income	602	416	1,760	1,514
Less net income for noncontrolling interests	(1)	0	(1)	0
Net income attributable to Eaton ordinary shareholders	$ 601	$ 416	$ 1,759	$ 1,514
Net income per share attributable to Eaton ordinary shareholders
Diluted (usd per share)	$ 1.44	$ 0.95	$ 4.16	$ 3.45
Basic (usd per share)	$ 1.44	$ 0.96	$ 4.18	$ 3.47
Weighted-average number of ordinary shares outstanding
Diluted (shares)	418.4	436.3	422.5	438.4
Basic (shares)	416.6	433.5	420.7	435.8
Cash dividends declared per ordinary share (usd per share)	$ 0.71	$ 0.66	$ 2.13	$ 1.98

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating activities
Net income	$ 1,760	$ 1,514
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	668	680
Deferred income taxes	(71)	(211)
Pension and other postretirement benefits expense	115	123
Contributions to pension plans	(89)	(99)
Contributions to other postretirement benefits plans	(11)	(26)
Changes in working capital	6	62
Other - net	136	(205)
Net cash provided by operating activities	2,514	1,838
Investing activities
Capital expenditures for property, plant and equipment	(441)	(411)
Cash paid for acquisitions of businesses, net of cash acquired	(277)	0
Sales (purchases) of short-term investments - net	(132)	329
Proceeds (payments) for settlement of currency exchange contracts not designated as hedges - net	26	(122)
Other - net	(8)	(52)
Net cash provided by (used in) investing activities	(832)	(256)
Financing activities
Proceeds from borrowings	1,232	80
Payments on borrowings	(757)	(486)
Cash dividends paid	(907)	(864)
Exercise of employee stock options	40	28
Repurchase of shares	(978)	(600)
Employee taxes paid from shares withheld	(45)	(24)
Other - net	(8)	(2)
Net cash provided by (used in) financing activities	(1,423)	(1,868)
Effect of currency on cash	7	52
Total increase (decrease) in cash	266	(234)
Cash at the beginning of the period	283	561
Cash at the end of the period	$ 549	$ 327

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Narrative (Details)	May 14, 2019	Sep. 15, 2017	Oct. 14, 2016
Condensed Financial Information Disclosure [Abstract]
Eaton and certain other 100% owned subsidiaries guarantee of Senior Debt	100.00%	100.00%	100.00%

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Impact of Derivatives Not Designated as Hedges (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedges	$ (39)	$ 9
Currency exchange contracts | Other income (expense) - net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedges	(40)	8
Commodity contracts | Cost of products sold
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedges	$ 1	$ 1

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RETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Pension plan | Non-United States pension benefit expense
Retirement benefits plans expense
Service cost	$ 14	$ 16	$ 43	$ 48
Interest cost	13	13	42	40
Expected return on plan assets	(25)	(27)	(79)	(80)
Amortization	10	9	29	29
Total	12	11	35	37
Settlements, curtailments and special termination benefits	2	1	3	1
Total expense	14	12	38	38
Pension plan | United States pension benefit expense
Retirement benefits plans expense
Service cost	22	25	68	75
Interest cost	35	30	103	91
Expected return on plan assets	(59)	(63)	(176)	(190)
Amortization	15	24	46	71
Total	13	16	41	47
Settlements, curtailments and special termination benefits	13	13	36	38
Total expense	26	29	77	85
Other postretirement benefits expense
Retirement benefits plans expense
Service cost	0	1	1	2
Interest cost	3	3	10	10
Expected return on plan assets	0	0	(1)	(2)
Amortization	(3)	(4)	(10)	(10)
Total	0	0	0	0
Settlements, curtailments and special termination benefits	0	0	0	0
Total expense	$ 0	$ 0	$ 0	$ 0

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GOODWILL (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 13,328
Additions	164
Translation	(155)
Ending balance	13,337
Electrical Products
Goodwill [Roll Forward]
Beginning balance	6,562
Additions	0
Translation	(97)
Ending balance	6,465
Electrical Systems and Services
Goodwill [Roll Forward]
Beginning balance	4,241
Additions	164
Translation	(29)
Ending balance	4,376
Hydraulics
Goodwill [Roll Forward]
Beginning balance	1,212
Additions	0
Translation	(23)
Ending balance	1,189
Aerospace
Goodwill [Roll Forward]
Beginning balance	941
Additions	0
Translation	(3)
Ending balance	938
Vehicle
Goodwill [Roll Forward]
Beginning balance	292
Additions	0
Translation	(3)
Ending balance	289
eMobility
Goodwill [Roll Forward]
Beginning balance	80
Additions	0
Translation	0
Ending balance	$ 80

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LEASES - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Lessee, Lease, Description [Line Items]
Operating lease assets	$ 444	$ 0
Other current liabilities	124
Operating lease liabilities	333	$ 0
Total operating lease liabilities	457
Accumulated depreciation	(14)
Net property, plant and equipment	19
Current portion of long-term debt	6
Long-term debt	14
Total finance lease liabilities	$ 20
Operating leases, weighted average remaining term	5 years 1 month 6 days
Finance leases, weighted average remaining lease term	3 years 7 months 6 days
Operating Lease, weighted average discount rate	3.60%
Finance Lease, weighted average discount rate	5.90%
Land and Building
Lessee, Lease, Description [Line Items]
Finance Lease, right-of-use asset	$ 16
Machinery and Equipment
Lessee, Lease, Description [Line Items]
Finance Lease, right-of-use asset	$ 17